The holidays are over and it's time again to search for the best ASX growth shares to buy.
There are three particular stocks that the team at Elvest noticed creeping up in December, and have backed for further gains in 2024.
Let's see what the analysts had to say:
Second half could be phenomenal
Mining technology provider RPMGlobal Holdings Ltd (ASX: RUL) saw its shares whipsaw all throughout 2023, but it ended the year with a bang.
The share price has now rocketed more than 15% since 7 December.
Oddly the Elvest team couldn't find a tangible reason why this had happened.
"RPMGlobal rose on no news in December," the analysts said in a memo to clients.
"It was perhaps due, after muted receptions to the company's October and November EBITDA upgrades."
RPMGlobal, they added, also has a seasonal pattern for its revenue.
"We expect typically modest cash flow for RUL's December half, reflecting the strong 2H skew of the company's maintenance and subscription software billing cycle."
The Elvest analysts noted the earnings before interest, taxes, depreciation, and amortisation (EBITDA) guidance is in the range of $21 to $23.5 million, which is about 50% up on the last financial year.
"Despite the recent rally, RPMGlobal remains materially undervalued, in our view."
Opening up the Chinese market
Lovisa Holdings Ltd (ASX: LOV) is another stock on the way up, with the price soaring 29% since late November.
December was a milestone month for the low-cost jewellery retailer.
"Lovisa opened its first store in China during the month, a market in which CEO Victor Herrero has deep experience, having opened over 600 stores in previous roles."
The foray into the world's second largest economy demonstrated why investors are so bullish on the chain.
"Lovisa currently has a presence in over 40 markets with the US currently driving group store network growth in the mid to high teens (%) in FY24.
"Success in China could potentially extend this runway by several years."
The ASX shares exceeding expectations
Neuren Pharmaceuticals Ltd (ASX: NEU) was the best performing stock on the S&P/ASX 200 Index (ASX: XJO) in 2023, gaining a mind-blowing 212%.
Incredibly though, professional investors think there is more upwards movement to come.
The Elvest team pointed out how the phase 2 clinical trial results last month for its drug NNZ-2591 "exceeded expectations" in treating Phelan-McDermid syndrome (PMS).
"The PMS results bode well for the Phase 2 trials of NNZ-2591 for Pitt Hopkins syndrome, Angelman syndrome and Prader-Willi syndrome, results of which will be released during CY24."
The data was so impressive that they reckon it was stronger than Daybue, which Neuren already receives commercial revenue for.
"In the meantime, we expect to see continued strong sales growth for Daybue, which is licensed to NASDAQ-listed Acadia Pharmaceuticals Inc (NASDAQ: ACAD), who will next report in early February."
