Buy and hold these fantastic ASX growth shares: experts

These growth shares could be in the buy zone according to experts…

| More on:
A man points at a paper as he holds an alarm clock.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor James Mickleboro has positions in Domino's Pizza Enterprises and Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises and Life360. The Motley Fool Australia has recommended Domino's Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

Here are the top five ASX 200 shares in Macquarie's model growth portfolio

These ASX 200 shares are highly rated by analysts at Macquarie.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX shares to buy in 2024 and hold for the next 10 years

Analysts think these top shares are in the buy zone right now.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Growth Shares

4 ASX growth shares I think will benefit from interest rate cuts in 2024

Not only will home loan holders rejoice, investors of these stocks could also be yelling with joy when the Reserve…

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Growth Shares

3 of the best ASX growth shares to buy now

Analysts see plenty of upside for these buy-rated shares.

Read more »

A man and woman in an office look at a laptop and discuss investing, budget strategies or other financial concepts
Growth Shares

Here's why analysts love these buy-rated ASX 200 growth shares

There's a reason analysts are feeling bullish about these companies.

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Growth Shares

Big returns could be coming for high-flying Lovisa shares

Morgans doesn't believe it is too late to snap up this hot stock.

Read more »

Smiling young parents with their daughter dream of success.
Growth Shares

Why these ASX 200 growth shares could be top buys now

Analysts are feeling bullish about these growth stocks. Let’s see what they’re saying.

Read more »

Concept image of a man in a suit with his chest on fire.
Growth Shares

Ignore the noise and buy this hot ASX growth stock

A recent pullback may have created a buying opportunity according to Bell Potter.

Read more »