Are you looking for some ASX growth shares to buy this month?
If you are then you might want to hear what Morgans is saying about the two listed below.
Here's why the broker thinks they could be some of the best buys on the market right now:
Aristocrat Leisure Limited (ASX: ALL)
The team at Morgans continues to rate this gaming technology company very highly.
The broker likes Aristocrat for three key reasons. These are its organic growth, its strong cash generation, and its balance sheet strength. It notes that the latter provides the company with opportunities to accelerate its growth with acquisitions. It explains:
We have three key reasons for being positive on ALL. 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 currently has an add rating and a $46 price target on Aristocrat's shares.
Goodman Group (ASX: GMG)
Another ASX growth share that could be a buy according to Morgans is Goodman Group.
It believes the industrial property company is well-positioned for growth thanks to the positive outlook for beds and sheds in the current environment. It explains:
GMG rarely screens cheap against domestic peers, but within the context of its offshore peers, it consistently delivers higher returns at lower levels of leverage and at a comparable price to book ratio. Growth in Assets Under Management and development completions are a key determinant of value and an AUM of A$80bn (US$50m) is comparatively modest in a global context, whilst A$7bn (US$5.5n) of completions pa we see as likely sustainable. With continued increases in interest rates and persistent inflation (most notably construction costs), risks abound the REIT sector. This drives our preference for beds and sheds, reflecting the strength of those underlying operating markets.
Morgans currently has an add rating and a $24.50 price target. Though, with its share price nearing this target, it may be best to wait for a pullback before investing.
