There are plenty of ASX growth shares for investors to choose from on the Australian share market. But which ones could be top buys this month?
Two ASX growth shares that analysts are tipping as buys are named below. Here's why they could be in the buy zone for growth investors:
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Aristocrat Leisure Limited (ASX: ALL)
The first ASX growth share that could be a top option for investors next week 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 again this month. There are three reasons why the broker is bullish. 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 $46 price target on Aristocrat's shares.
Macquarie Technology Group Ltd (ASX: MAQ)
Another ASX growth share that could be a buy next week is Macquarie Technology. It is a telecommunication, cloud computing, cybersecurity, and data centre services provider.
Goldman Sachs has the company on its conviction list and is forecasting strong long-term growth. This is thanks partly to its belief that Macquarie Technology is developing an enduring vertically integrated cloud franchise. The broker recently 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.
