Analysts say these ASX growth shares have at least 20% upside

Big returns could be on the cards for owners of these shares.

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Are you looking for ASX growth shares to buy? Then read on because listed below are a couple that are highly rated by analysts.

Here's why they are tipping them as buys right now:

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Lovisa Holdings Limited (ASX: LOV)

The team at Morgans sees Lovisa as a top ASX growth share to buy right now.

It likes the fast-fashion jewellery retailer due to its affordable offering and huge global expansion plans. The latter could include an entry into the massive China market in the very near future. The broker explains:

Lovisa grew substantially in FY23 to finish the year with an 801-store network in 39 countries. We believe it 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 suggests a potential upside of over 40% from current levels.

Macquarie Technology Group Ltd (ASX: MAQ)

Goldman Sachs thinks that Macquarie Technology could be an ASX growth share to buy. It is a leading cloud, data centre, cyber security, and telecommunications company.

The broker is feeling very positive about the company's outlook thanks to a number of favourable tailwinds. This includes the emergence of generative AI and large language models (LLM) such as ChatGPT, which it believes will underpin strong demand for data centre services. It said:

[W]e expect AI to catalyse a third wave of demand for data centre providers in Australia as GenAI workloads shift from LLM training (generally done offshore) to inference and enterprise use cases (in Australia). The clearest beneficiary across our IT Services coverage is MAQ and its portfolio of DC assets in Sydney/Canberra, helping drive medium-term demand from hyperscalers and enterprises.

Goldman Sachs has a buy rating and a $77.70 price target on its shares. This implies a potential upside of over 20% from current levels.

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 Lovisa. The Motley Fool Australia has recommended Lovisa. 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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