3 ASX growth shares to buy with huge upside potential – analysts

These growth shares could generate big returns for investors in 2023…

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Investors that have a higher tolerance for risk might want to check out the ASX growth shares listed below.

These shares have been tipped as buys with significant upside potential in 2023. Here's what you need to know about them:

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Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals could be an ASX growth share to buy according to analysts at Morgans. The broker believes that the lithium giant's shares have been oversold recently. Particularly given its belief that "demand in the Chinese market could increase from March onwards."

Morgans currently has an add rating and $4.70 price target on this lithium miner's shares. Based on the current Pilbara Minerals share price, this implies potential upside of 26% for investors.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that has been rated as a buy is this online furniture and homewares retailer. Goldman Sachs is very positive on the company and is forecasting an EBITDA compound annual growth rate of 22% over the next 10 years.

In light of this, the broker has put a buy rating and $7.50 price target on its shares. Based on the latest Temple & Webster share price, this implies potential upside of almost 52% for investors over the next 12 months.

Xero Limited (ASX: XRO)

A final ASX growth share for investors to look at is cloud accounting platform provider Xero. The team at Citi remains very positive on its outlook even in the current economic environment. That because it expects "digitisation to be a bigger driver than macro for online accounting."

Citi currently has a buy rating and $97.90 price target on the company's shares. Based on the current Xero share price, this implies potential upside of 34% for investors in 2023.

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 Temple & Webster Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended 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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