Buy Xero and this ASX growth share for 2023: analysts

These growth shares get the thumbs up from analysts…

Looking for a growth share or maybe two to buy? If you are, you may want to look at the two listed below.

Here's why these ASX growth shares are rated highly right now:

A man holding a cup of coffee puts his thumb up and smiles with a laptop open.

Image source: Getty Images

Lovisa Holdings Limited (ASX: LOV)

This fast-fashion jewellery retailer could be a top option for growth investors right now.

Thanks to the popularity of its affordable offering, its focus on younger consumers, and its ambitious global expansion plans, Lovisa has been tipped to grow strongly in the coming years.

In respect to its expansion plans, the company recently revealed that it has already added a further 47 net new stores to its network in FY 2023. This brings its total to 676 stores across 26 countries. This helped drive exceptionally strong growth financial year to date despite the uncertain economic environment.

But it won't be stopping there. Far from it! Management also advised the retailer's first stores in Italy, Mexico, and Hungary are due to open in the coming weeks. 

A recent note reveals that UBS has put a buy rating and $29.00 price target on Lovisa's shares. 

Xero Limited (ASX: XRO)

This cloud accounting platform provider could be another ASX growth to buy for 2023.

Much like Lovisa, Xero has a very strong growth outlook. This is thanks to its huge global market opportunity.

At the last count, Xero was providing its core accounting solution, as well as payroll, workforce management, expenses and projects solutions, to a total of 3.3 million global subscribers.

However, Goldman Sachs points out that Xero has a "compelling global growth story" and is barely even scratching at the surface of its total addressable market (TAM) of ~45 million+ subscribers. In light of this, the broker believes the company is well-placed for strong growth over the next decade and beyond.

Goldman Sachs has a buy rating on Xero's shares with a $115.00 price target.

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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