Analysts expect market-beating returns from these ASX growth shares

Analysts think these shares could beat the market. But by how much?

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Over the last 30 years, the Australian share market has delivered a total average return of 9.6% per annum.

While this level of return is excellent, what if we could better that over the next 12 months?

Well, three ASX growth shares that have been tipped to generate market-beating returns are listed below. Here's what you need to know about them:

Lovisa Holdings Ltd (ASX: LOV)

Morgans is tipping big returns from this ASX growth share. It likes the fashion jewellery retailer due to its global expansion plans and the benefits of having an affordable offering in a tough consumer environment. In respect to its expansion plans, the broker notes that Lovisa "plans to enter mainland China in FY24, paving the way for significant longer-term growth."

Morgans has an add rating and a $27.50 price target on its shares. This implies a potential upside of over 38% from current levels.

ResMed Inc. (ASX: RMD)

Another ASX growth share that could have significant upside potential is sleep treatment company ResMed. The team at Citi believes that the recent share price weakness is a buying opportunity for investors.

The broker currently has a buy rating and a $39 price target on its shares. Based on the current ResMed share price of $22.98, this would mean a return of almost 70% over the next 12 months.

TechnologyOne Ltd (ASX: TNE)

A final ASX growth share that has been named as a buy and tipped to generate market-beating returns is enterprise software provider TechnologyOne. Goldman Sachs is a big fan of the company due to its defensive earnings and positive growth outlook. Its analysts "believe that TNE can grow PBT [profit before tax] >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 suggests that its shares could rise 16% over the next 12 months.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Lovisa, ResMed, and Technology One. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Lovisa and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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