2 excellent ASX growth shares tipped for big returns

Analysts are saying good things about these growth shares.

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If you're looking for ASX shares with strong growth potential to buy this month, 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:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX share that could be a top option for growth investors is Aristocrat Leisure. It is a leading gaming technology company offering poker machines, mobile games, and real money gaming (RMG).

Morgans is a big fan of the company and has it on its best ideas list. There are three reasons why it is bullish, 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.

Morgans has an add rating and a $45 price target on Aristocrat's shares. This compares to its current share price of $40.70.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share that has been tipped as a buy is enterprise software provider TechnologyOne.

Goldman Sachs continues to rate the company highly. This is due to its successful transition to a software-as-a-service focused business and its defensive earnings in a tough environment. It explains:

With the initial headwinds of the cloud transition to group revenue behind it, we believe TNE is well placed to reinvest into R&D (compounding its competitive advantage in its target verticals against small and/or unfocused peers) while still growing PBT margins. 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 has a buy rating and a $18.30 price target on its shares. This compares favourably to the latest TechnologyOne share price of $15.69.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Technology One. The Motley Fool Australia has recommended 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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