Are you looking for growth shares to buy? If you are, then you may want to check out the two listed below that Goldman Sachs rates as buys.
Here's what its analysts are saying about these explosive ASX growth shares right now:
Temple & Webster Group Ltd (ASX: TPW)
The first ASX growth share that Goldman Sachs says investors should buy is Temple & Webster. It is Australia's leading pure-play online retailer of furniture and homewares.
Goldman is tipping the company to grow at a rapid rate long into the future. It said:
TPW is early in its maturity cycle supporting long-term, sustainable growth. We forecast a +22% 10-yr EBITDA CAGR driven by consolidation of market share and growing online penetration. We do not think the market is pricing in upside from long term market share gains: If TPW can scale at a similar rate to JBH's early growth this could see >100% upside to our current valuation.
The broker is so positive on the company that it has just added its shares to its conviction list. Goldman has a conviction buy rating and $7.60 price target.
Webjet Limited (ASX: WEB)
Another ASX growth share that Goldman rates as a buy is online travel booking company Webjet.
It believes the company has comes out of the pandemic in a significantly stronger position. So much so, it is expecting Webjet to grow its earnings at a six-year compound annual growth rate of 15.3%. It commented:
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 $7.20 price target on its shares.
