Are you looking for some ASX 200 growth shares with the potential to generate attractive returns? Well, read on if you are.
That's because the two listed below have been named as buys by leading brokers. Here's what they are saying about these growth shares:
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Aristocrat Leisure Limited (ASX: ALL)
The first ASX 200 growth share to look at is Aristocrat Leisure. It is a leading gaming technology company with a portfolio of world-class businesses involved in poker machines, mobile games, and real money gaming (RMG).
Morgans is a big fan of Aristocrat. It recently named three key reasons for its bullish view. It said:
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.
Morgans currently has an add rating and a $45 price target on Aristocrat's shares.
TechnologyOne Ltd (ASX: TNE)
Another ASX 200 growth share that brokers are saying good things about is TechnologyOne. It is one of the region's leading enterprise software companies.
Goldman Sachs is feeling very positive about the company's outlook due to its defensive end-markets and sector tailwinds. It also feels its shares are undervalued at current levels. It said:
Despite TNE's above-trend PBT outlook, improving underlying growth and earnings visibility (now that >80% revenue is recurring), the share price has returned to pre-result levels. On an earnings multiple basis we show that TNE trades at a discount to SaaS peers when adjusting for its growth outlook, and we believe TNE's dominant market position, defensive end markets and mission-critical systems can command a premium valuation.
Goldman has a buy rating and a $18.30 price target on Technology One's shares.
