Results in! Buy these ASX growth shares now: analysts

Analysts remain very positive on these growth shares following their results releases this week…

| More on:
A happy man and woman sit having a coffee in a cafe while she holds up her phone to show him the ASX shares that did best today.

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

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:

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and ReadyTech. The Motley Fool Australia has recommended Lovisa and ReadyTech. 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 fit man flexes his muscles, indicating a positive share price movement on the ASX market
Growth Shares

4 ASX growth shares to buy to supercharge your portfolio in June

Analysts think these exciting growth stocks are in the buy zone.

Read more »

Kid on a skateboard with cardboard wings soars along the road.

ASX growth stock on the cusp of profitability: My multibagger pick

I'm hoping to buy this small-cap stock and turn $5,000 into $20,000.

Read more »

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Growth Shares

2 ASX growth shares with legit potential to outperform the market

Analysts are tipping these shares to deliver returns far greater than historical averages.

Read more »

A man is shocked about the explosion happening out of his brain.
Growth Shares

2 no-brainer ASX 200 shares to buy next week

It's not hard to see why these quality companies could be great long term investment options.

Read more »

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

2 of the best ASX growth shares to buy right now

Analysts believe these shares are well-positioned for growth in the coming years.

Read more »

A corporate female wearing glasses looks intently at a virtual reality screen with shapes and lights representing Block shares going up today
Growth Shares

Forget Nvidia: This ASX growth stock is poised for its own bull run

I think this ASX growth stock could beat the phenomenal share price gains posted by Nvidia.

Read more »

a man looks down at his phone with a look of happy surprise on his face as though he is thrilled with good news.
Growth Shares

2 highly rated ASX growth shares to buy before it's too late

Analysts don't want you to miss out on these growing companies.

Read more »