There are plenty of ASX growth shares for investors to choose from on the Australian share market.
Some growth shares, such as Altium Limited (ASX: ALU) and Xero Limited (ASX: XRO), are well-known in the market and get a lot of attention from investors.
However, not all growth shares are able to command this level of investor attention. But that doesn't make them any less attractive as investment options.
For example, here are two ASX growth shares that could be hidden gems:
Lifestyle Communities Ltd (ASX: LIC)
The first ASX growth share that could be a hidden gem is Lifestyle Communities. It is a leading developer and manager of residential land lease communities in Australia.
Goldman Sachs believes the company is well-positioned for growth over the long term thanks to structural tailwinds. It explains its bullish view as follows:
The long-term outlook for LIC is very positive — we believe outperformance of the stock will be driven by: (1) a step up in the pace of land acquisitions, with industry build rates below demand from an ageing population; (2) structural growth in demand for land lease as the sector increases its penetration among retirees; (3) fundamental valuation support for cap rates. In our view, the next step for LIC is to expand its development pace to three communities p.a., which we believe will be a key catalyst for the stock, and we see LIC as well capitalised to fund a faster development pace through its capital recycling model.
Goldman Sachs has a conviction buy rating and a $25.15 price target.
Macquarie Technology Group Ltd (ASX: MAQ)
Another ASX growth share that could be a hidden gem is Macquarie Technology. It is a telecommunication, cloud computing, cybersecurity, and data centre services provider.
Macquarie Technology doesn't get anywhere near as much fanfare as NextDC Ltd (ASX: NXT) despite being subjected to the same cloud computing tailwinds.
It is these tailwinds that have led to Goldman Sachs putting the company on its conviction list and has it forecasting very strong earnings growth through to FY 2026. It commented:
We expect a robust earnings' growth outlook driven by the ramp-up of hyperscale cloud deployments and continued growth in managed services, with long-term shareholder value creation underpinned by attractive returns on data centre investments and debt/sale-and-leaseback funding. We believe that MAQ is undervalued on a SOTP basis, with high-quality underlying businesses across the IT stack from data centre infrastructure to managed services and cybersecurity. We are positive on management's strategy and long history of successful execution, and believe MAQ is on track to building an enduring vertically-integrated cloud franchise.
Goldman has a buy rating and a $77.70 price target on its shares.
