2 excellent ASX growth shares that analysts say are buys in January

Analysts say these ASX growth shares are buys this month…

Are you interested in adding some ASX growth shares to your portfolio in January? If you are, you may want to look at the two listed below that have recently been named as buys.

Here's what you need to know about them:

Man sits smiling at a computer showing graphs.

Image source: Getty Images

Lovisa Holdings Limited (ASX: LOV)

This fast-fashion jewellery retailer's shares were on form in 2022, as you can see above.

The good news is that it may not be too late for growth investors to invest. That's because 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.

This certainly has been the case so far in FY 2023. For the first 19 weeks of the financial year, Lovisa reported a 60% increase in total sales. This was driven by the addition of 47 net new stores and a 16.1% increase in like for like sales growth.

Pleasingly, those store openings won't stop there. Management advised that the retailer's first stores in Italy, Mexico, and Hungary were due to open shortly after its update.

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

Temple & Webster Group Ltd (ASX: TPW)

Unlike Lovisa, as you can see above, 2022 wasn't kind to the Temple & Webster share price.

While this was disappointing for the online furniture and homewares retailer's shareholders, it could prove to be a fantastic buying opportunity for the rest of us.

That's because the shift online in this retail category is still in its early stages compared to other categories. As a result, Temple & Webster appears well-placed to continue benefiting and growing strongly for some time to come.

The team at Goldman Sachs expects that to be the case and is forecasting an EBITDA compound annual growth rate of 22% over the next 10 years.

Goldman has a buy rating and $7.50 price target on the company's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Temple & Webster Group. The Motley Fool Australia has recommended Lovisa and Temple & Webster Group. 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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