Looking for an ASX 200 growth share or two to buy? Two that analysts rate as buys this month are listed below.
Here's what the brokers are saying about them:
Lovisa Holdings Limited (ASX: LOV)
The first ASX 200 growth share that has been named as a buy is this rapidly growing fast fashion jewellery retailer.
When Lovisa released its half-year results in February, it blew the market away with its impressive performance. The company 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.
The good news is that the team at Morgans expects this strong form to continue in the coming years. As a result, the broker has its shares on its best ideas list with an add rating and $28.50 price target. It recently commented:
With ambitious and well-incentivised new leadership in place, we think now is the time LOV steps up to become a global force. [..] Investment will be needed to expand LOV's network in the US and Europe and to take it into new markets, but the returns could be stellar. We think LOV's products fill an underserved niche, offering fast fashion jewellery at prices that are attainable to a resilient target demographic.
ResMed Inc. (ASX: RMD)
Another ASX 200 growth share that has been tipped as a buy is ResMed. It is a medical device company with a focus on sleep treatment solutions.
Goldman Sachs is a fan of ResMed and has a buy rating and $38.00 price target on its shares.
Its analysts like ResMed due to its strong position in the sleep treatment market, its huge addressable market, and the benefits of a major competitor product recall. It commented:
The timing/nature of Philips' re-entry into the market remains an important debate, but under most realistic scenarios we continue to expect an excess demand dynamic through end-2023. Whilst supply shortages and cost inflation mitigated the tailwind from these competitor challenges through FY22, we believe the benefits to RMD are significant, and could continue to accrue over many years. As operational pressures continue to ease we see margin/cost dynamics improving, supporting a favourable earnings trajectory through the long term. We currently model an EPS CAGR of +11% (FY23-26E), with potential upside depending on how competitive/regulatory dynamics develop.
