Looking for a growth share or maybe two to buy? If you are, you may want to look at the two listed below that have been named as buys by Morgans.
Here's why the broker believes they are buys:
Corporate Travel Management Ltd (ASX: CTD)
Corporate Travel Management could be an ASX growth share to buy right now according to Morgans. It is a provider of innovative and cost-effective travel management solutions to the corporate market.
Morgans has been positive on the company for a while and recently boosted its valuation to reflect a major contract win. The broker expects this to support its organic growth and margin profile. It commented:
This material win for CTD is a strong endorsement of the quality of its service offering and its ability to manage complex travel requirements. Importantly it underpins strong organic growth and should increase CTD's margins and return profile. Following forecast upgrades and applying slightly higher multiples, our blended valuation has risen to A$24.00 from A$21.90. We maintain an Add rating on CTD and see the next catalysts for the stock being trading updates via broker conferences in May and hopefully retaining the Whole of Australian Government (WoAG) contract, which expires on 30 June 2023 and is currently up for tender.
Morgans has the company's shares on its best ideas list with an add rating and $24.00 price target. This suggests potential upside of almost 15% from current levels.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another ASX growth share that could be in the buy zone right now according to Morgans is pizza chain operator, Domino's.
Although the broker was very disappointed with the company's performance during the first half of FY 2023, it feels that investors should stick with it. Particularly given its attractive valuation and strong long-term growth potential, which is being underpinned by its store expansion plans. It commented:
Despite the evident disappointment of the 1H23 result, we had anticipated this result could be a negative one for sentiment. We didn't expect the shares to fall as much as they did, however, and even with significantly lower earnings estimates for FY23 and FY24 and a significantly lower target price, there is enough upside to our target to keep us on an Add. But our faith is shaken.
Morgans has an add rating and $70.00 price target on its shares. Based on the current Domino's share price of $51.72, this implies potential upside of 35% for investors.
