Analysts expect big returns from these ASX 200 growth shares

Analysts have given these growth shares a big thumbs up.

| More on:
happy investor, share price rise, increase, up

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Thankfully for growth investors, there are lots of ASX 200 growth shares to choose from on the Australian share market. But which ones could be buys in December?

Two growth shares that analysts are tipping as buys are named below. Here's what you need to know about them:

Life360 Inc (ASX: 360)

Goldman Sachs is a big fan of this location technology company and sees it as an ASX 200 growth share to buy.

The broker highlights that the company has a significant long-term growth opportunity and trades at a discount to peers. It 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. […] We see Life360 as reaching a volume/pricing inflection point, with potential structural profitability tailwinds on the horizon from a reduction in effective app store fees. Life360's Subscription business currently trades at a discount to global subscription app peers when adjusting for its superior growth outlook

Goldman Sachs has a buy rating and a $10.50 price target on its shares. This suggests a potential upside of 34% from current levels.

Lovisa Holdings Ltd (ASX: LOV)

Over at Bell Potter, its analysts think that Lovisa could be an ASX 200 growth share to buy.

The broker believes that the fashion jewellery retailer is well-positioned for growth thanks to its large global expansion opportunity. It said:

We maintain our BUY rating as we remain constructive on the company's ability to execute on a large global roll-out opportunity as a strong player in the fashion jewellery market while remaining relatively better immune to consumer spend pressures given the accessibility of the product from a price point perspective, once comps normalise.

The broker has a buy rating and a $25 price target on its shares. This implies a potential upside of 26% for investors.

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

More on Growth Shares

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Growth Shares

Why these ASX 200 growth shares could rise 40% in 12 months

Analysts are tipping these shares to deliver big returns over the next 12 months.

Read more »

A woman makes the task of vacuuming fun, leaping while she pretends it is an air guitar.
Opinions

Opinion: This is one of the best ASX growth shares to own for the next 5 years

This stock is rapidly growing, and I’m excited about it.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Growth Shares

Buy Xero and this ASX 200 growth share in February

Analysts have good things to say about these growing companies.

Read more »

happy investor, share price rise, increase, up
Growth Shares

Buy these ASX growth shares with $3,000 in February

Analysts think these growth shares could be great options for investors with money to put into the share market.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Growth Shares

2 no-brainer ASX All Ords shares to buy with $2,000

Analysts have good things to say about these stocks. Let's see why they are so bullish.

Read more »

Two men look excited on the trading floor as they hold telephones to their ears and one points upwards.
Growth Shares

Where to invest $1,000 into ASX 200 stocks in February

Analysts think these shares would be great options for Aussie investors next month.

Read more »

Happy young woman saving money in a piggy bank.
Growth Shares

If a 40-year-old invested in top ASX 200 growth shares, here's what they could have by retirement

Are growth shares the key to building wealth? Let's have a look.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Growth Shares

These ASX growth shares could deliver market-beating returns

Analysts have good things to say about these growth shares.

Read more »