These ASX growth shares can rise 30% to 40%

Analysts believe that big returns could be on the cards for owners of these shares.

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If you're a growth investor on the lookout for some big returns over the next 12 months, then you may want to check out the three ASX growth shares listed below.

Analysts currently have buy ratings on these shares and are tipping returns of between 30% and 40% from where they trade today.

Here's what you need to know about them:

Life360 Inc (ASX: 360)

This location technology company could be an ASX growth share to buy according to Goldman Sachs.

It highlights that the company has a significant long-term growth opportunity. It recently said:

We estimate Life360 is exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US.

Goldman Sachs has a buy rating and a $10.50 price target on its shares. This implies a potential upside of 39% for investors from current levels.

ResMed Inc (ASX: RMD)

Analysts at Morgans believe that ResMed would be a great ASX growth share to buy.

The broker feels that the Ozempic-induced selloff has created a buying opportunity for investors. Particularly given its huge market opportunity even in a worst-case scenario. It said:

Management presented an epidemiological model of global OSA prevalence through 2050, suggesting while weight-loss drugs could shave up to c15% off TAM (worst case) the market would remain large (1.2bn) and underpenetrated (<10%).

Morgans has an add rating and a $32.74 price target on ResMed's shares. This suggests a potential upside of 40% for investors.

Universal Store Holdings Ltd (ASX: UNI)

Finally, analysts at Bell Potter see this youth fashion retailer as an ASX growth share to buy.

Bell Potter notes that while Universal Store's sales in FY 2024 are down on a like for like basis, they are still ahead of its expectations. In response to the update, the broker said:

We maintain our BUY rating given the company's store roll-out & brand growth strategy, margin expansion via private label product penetration (currently ~45%) and earnings trajectory through to FY25.

Bell Potter has a buy rating and a $4.80 price target on its shares. This implies a potential upside of 34% over the next 12 months. In addition, the broker is forecasting a 6% dividend yield in FY 2024.

Motley Fool contributor James Mickleboro has positions in Life360, ResMed, and Universal Store. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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