The results have certainly been coming in thick and fast this month.
Two ASX growth shares that brokers have slapped buy ratings on this week following the release of their respective results are listed below. Here's what they are saying:
Image source: Getty Images
Lovisa Holdings Limited (ASX: LOV)
The first ASX growth share that has been named as a post-results buy is this fast fashion jewellery retailer.
Earlier this week, Lovisa released its half-year results and reported a 44.8% increase in revenue to $315.5 million and a 31.9% jump in net profit after tax to $253.2 million.
This went down well with analysts at Morgans, which responded by retaining its add rating with an improved price target of $29.00. The broker commented:
LOV continues to impress us with the rate at which it opens new stores and expands into new markets. As we have said before, LOV may just prove to be one of the biggest success stories in Australian retail. LOV is showing every sign of becoming a global brand. Investment will be needed to expand LOV's network in the US and Europe and to take it into new markets, but the company has the balance sheet capacity to fund this and the returns could be stellar. We retain an ADD rating. Our target price increases from $28.50 to $29.00.
Readytech Holdings Ltd (ASX: RDY)
Another ASX growth share that delivered strong growth during the first half was enterprise software provider Readytech.
It reported a 34.1% increase in revenue to $47.9 million and underlying EBITDA of $15.6 million. Management also confirmed that it remains on target to achieve its FY 2023 guidance and reaffirmed its FY 2026 goal of over $160 million of organic revenue.
While the result was a touch short of expectations, Goldman Sachs responded positively and retained its buy rating with a trimmed price target of $4.40. It said:
RDY's 1H23 result missed on both revenue and EBITDA (-5%/-9%), although we remain positive on the company's ability to meet its reiterated full-year guidance for mid-teens organic growth at low-to-mid 30's EBITDA margin. Our constructive view is based on encouraging metrics including (1) A$9mn ACV from 6 enterprise deals signed late in 1H23 and yet to contribute to group revenue; (2) average revenue per new customer of A$72k in the half, up from A$52k in FY22, demonstrating RDY's enterprise momentum; and (3) easing tech labour pressures, supporting margin expansion in 2H23.
