Are you looking for some additions to your growth portfolio in July? If you are, then you may want to check out the two ASX growth shares listed below that have been given buy ratings by brokers.
Here's why they rate them highly right now:
Aristocrat Leisure Limited (ASX: ALL)
The first ASX growth share that could be a buy is Aristocrat Leisure.
Morgans is positive on the leading gaming technology company. This is due to its long-term growth potential, which is being supported by the popularity of its poker machines and digital games and its fledgling real money gaming (RMG) operations. The broker commented:
We're optimistic about ALL's long-term growth potential, given its superior capitalisation and strong ability to invest in the development of its land-based and digital gaming businesses. Additionally, ALL has a high cash conversion rate and ROCE, despite running a capital-light model. Additionally, ALL has ample funding for investment in online RMG, even following the recent buyback extension.
Its analysts currently have an add rating and a $43 price target on its shares. This compares favourably to the latest Aristocrat share price of $36.80.
Objective Corporation Limited (ASX: OCL)
Another ASX growth share that could be a buy is Objective Corp.
Goldman Sachs is bullish on the public sector software provider due to the company's strong position in a relatively defensive sector.
The broker believes that these defensive earnings will support strong growth in the coming years. Its analysts explain:
In our view OCL is well placed to deliver robust and defensive earnings growth driven by (1) R&D and new product cycles accelerating the contribution from newer products including Nexus, Build and RegWorks; (2) cycling of revenue/earnings headwinds from model transition away from perpetual / services revenue and towards subscriptions; and (3) cost management into FY24, with +350/+250bps margin expansion driving +23%/+32% FY24/25 EPS growth when comping trough FY23E earnings.
Goldman Sachs currently has a buy rating and a $14.90 price target on its shares. This compares to the latest Objective Corp share price of $13.63.
