If you're looking for ASX growth shares to buy, then look no further.
That's because Morgans has recently named some among its best ideas for the month of June.
Two that make the cut are listed below. Here's why it is very bullish on them:
Aristocrat Leisure Limited (ASX: ALL)
The first ASX growth share to buy according to Morgans is this leading gaming technology company.
The broker currently has an add rating and a $45 price target on its shares. It likes Aristocrat for three key reasons. It explains:
We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE; and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.
Corporate Travel Management Ltd (ASX: CTD)
Morgans is also very positive on this corporate travel booker and has it on its best ideas list again this month.
The broker has an add rating and a $24 price target on the ASX growth share.
Its analysts believe that Corporate Travel Management is well-placed for growth in the coming years. This is thanks to the travel market recovery, acquisitions it made during the pandemic, cost reductions, and its focus on technology. It explains:
Taking a longer term view, CTD remains as a key pick for the travel sector. We see substantial upside in its share price as the company recovers from the COVID affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost out opportunities and continued to develop its market leading technology offering which means that it will require less staff in the future. CTD is well managed and has a strong balance sheet (no debt).
