If you like ASX growth shares and buy and hold investing, then you may want to read on.
That's because listed below are two ASX shares that have been tipped to grow very strongly over the long term. Here's what you need to know about these buy-rated growth shares:
Domino's Pizza Enterprises Ltd (ASX: DMP)
The first ASX growth share that has been tipped as a buy is this pizza chain operator.
Its shares were sold off in 2022 amid concerns over inflationary pressures on both its costs and consumer spending.
And while they have rebounded strongly in recent months, they are still down materially since this time last year. This could be a buying opportunity according to analysts at Morgans.
The broker believes that Domino's is "a high quality operator with significant brand strength, first class executive management and a global platform for long-term network expansion." It also believes that "now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time."
Morgans currently has an add rating and $90.00 price target on its shares, which implies potential upside of 24%.
Life360 Inc (ASX: 360)
Another ASX growth share that could be in the buy zone after a difficult time in 2022 is Life360.
It is a growing location technology company that has almost 50 million global active users of its eponymous Life360 mobile app. From these users, the company expects to generate revenue in the range of US$225 million to US$240 million in FY 2022.
The good news is that this is still only a fraction of its market opportunity. For example, Goldman Sachs estimates that "Life360 is exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US."
The broker also believes "Life360 is approaching an inflection point as it proves the pricing power of its subscription business model and moves out of the non-profitable tech basket." It feels this could be supportive of a re-rating in the near future.
Goldman has a buy rating and $7.90 price target on Life360's shares, which implies potential upside of 38% for investors from current levels.
