Are you looking to add some growth shares to your portfolio for 2023?
If you are, two ASX shares that could be worth considering are listed below. Here's why Goldman Sachs rates them as buys:
Image source: Getty Images
Allkem Ltd (ASX: AKE)
The first ASX growth share to consider is Allkem. It is one of the world's largest lithium miners with projects in Argentina, Australia, and North America.
From these projects, Allkem is aiming to grow its production in a way that allows it to maintain a 10% share of global lithium supply over the long term.
Goldman Sachs is bearish on the lithium industry right now due to its belief that lithium prices will tumble in the coming years. However, it is positive on Allkem due to the aforementioned production growth and exposure to several lithium types. This includes moving downstream from spodumene into lithium chemicals, which it sees as a margin accretive opportunity. It commented:
Of our covered Australian lithium companies, Allkem has the best LCE growth outlook with production growing >4x to FY27E with further downstream optionality on carbonate production
Goldman has a buy rating and $15.20 price target on Allkem's shares.
Webjet Limited (ASX: WEB)
Another ASX growth share that Goldman rates as a buy is online travel booking company Webjet.
The broker is a fan of Webjet due to its belief that it has exited the pandemic as a significantly stronger company. It is expecting this to underpin a six-year compound annual growth rate of 15.3% for its earnings. It added:
Our near term earnings changes remain modest given that we already price in a strong recovery for WEB in FY24/25. What these results have given us greater confidence is in the group's longer term outlook for both the Bedbanks and OTA businesses. WEB also continues to report strong cash generation.
Goldman has a conviction buy rating and price target of $6.90 on its shares.
