There are plenty of ASX 200 growth shares for investors to choose from. But two of the best right now could be listed below, according to analysts.
Here's why they are bullish on these shares:
Aristocrat Leisure Limited (ASX: ALL)
Morgans is very positive on this gaming technology company and sees it as an ASX 200 growth share to buy right now. Its analysts have Aristocrat's shares on their best ideas list for February with an add rating and $43.00 price target.
The broker is expecting Aristocrat to continue its strong growth long into the future thanks to a combination of factors. It explained:
We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.
Xero Limited (ASX: XRO)
Goldman Sachs is a big fan of Xero and recently named the cloud accounting platform provider as its top ASX 200 tech pick. The broker has a buy rating and $109.00 price target on its shares.
Its analysts are positive on Xero due largely to its very strong long term growth outlook. This is underpinned by its high quality platform, the shift online, and its huge global target market of over 100 million small businesses. Goldman commented:
We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$76bn TAM. Following the recent underperformance (absolute/relative), we see an attractive entry point into a compelling global growth story and our preferred large-cap technology name in ANZ, and are Buy rated (on CL). Key catalysts include: Upcoming results and opex outlook; CEO strategy update, and potential M&A.
