If you're looking for ASX stocks with strong growth potential to buy in August, then look no further.
Listed below are two stocks that analysts are feeling bullish on. Here's why they are tipping them as buys right now:
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Lovisa Holdings Limited (ASX: LOV)
The first ASX stock that could be a buy is fast-fashion jewellery retailer Lovisa.
Morgans thinks it could be a top long-term option due to the popularity of its affordable offering and its huge global expansion plans. Its analysts said:
LOV continues to impress us with the rate at which it opens new stores and expands into new markets. As we have said before, LOV may just prove to be one of the biggest success stories in Australian retail. LOV is showing every sign of becoming a global brand. Investment will be needed to expand LOV's network in the US and Europe and to take it into new markets, but the company has the balance sheet capacity to fund this and the returns could be stellar.
Morgans has an add rating and a $26 price target on its shares. This implies a potential upside of 24% for investors.
TechnologyOne Ltd (ASX: TNE)
Another ASX stock that could be a buy is enterprise software provider TechnologyOne.
Goldman Sachs is positive on TechnologyOne. This is due to its successful transition to a software-as-a-service focused business and its defensive earnings. It explains:
We highlight the defensiveness of TNE's core end markets of Local Government (35% of 1H23 ARR) and Education (25%), and the public sector more broadly (>75%), with growing IT spending supported by revenue streams including council rates and government funding. We see TNE's +10-15% FY23E PBT growth guidance as conservative, and believe that TNE can grow PBT >15% p.a. across FY23-25E driven by its strong ARR outlook (+18% FY22-25E CAGR) and modest margin expansion (+220bps FY22-25E).
Goldman Sachs has a buy rating and a $18.30 price target on Technology One's shares. This implies a potential upside of 15% for investors.
