There are a lot of growth shares for investors to choose from on the ASX.
To narrow things down, I have picked out three ASX growth shares that have recently been tipped as buys with major upside potential.
Here's what you need to know:
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Pilbara Minerals Ltd (ASX: PLS)
Pilbara Minerals shares could be a top option for growth investors. This is because the lithium giant has been tipped to generate big returns from current levels by analysts at Macquarie. This is due to its belief that the miner is well-placed to generate huge free cash flow from its expanding operations in the coming years.
Macquarie currently has an outperform rating and $7.70 price target on Pilbara Minerals' shares. This implies potential upside of 82% for investors.
Readytech Holdings Ltd (ASX: RDY)
Another ASX growth share to buy could be Readytech. It is a leading provider of mission-critical solutions to the education, employment services, workforce management, government and justice sectors. Goldman Sachs is bullish on the company and believes its shares are cheap considering its growth potential. It highlights that "RDY is now trading at ~17x FY24 P/E while delivering ~20% FY23-25E EBITDA CAGR." The latter is expected to be "supported by its defensive public sector end-markets (~3/4 of earnings) and mission-critical software systems."
Goldman has a buy rating and $4.40 price target on its shares. This suggests potential upside of 42% from current levels.
Temple & Webster Group Ltd (ASX: TPW)
A final ASX growth share that could be a buy is Temple & Webster. It is Australia's leading pureplay online furniture and homewares retailer. Goldman Sachs is also very positive on the company and believes it is well-placed for strong growth over the next decade. This is due to its belief that the company "is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry."
Goldman has a buy rating and $6.10 price target on its shares. This would mean a return of almost 60% over the next 12 months.
