If you're a growth investor and have room in your portfolio for some new additions, then it could be worth checking out the two named below.
Goldman Sachs is feeling very positively about both of these ASX growth shares and is tipping them as top buys.
Here's what the broker is saying:
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TechnologyOne Ltd (ASX: TNE)
Goldman Sachs is a big fan of this enterprise software provider and sees it as a great longer term option.
This is because it believes the company can deliver mid to high teens earnings per share growth through to at least FY 2026. The broker explains:
In our view, the company is well placed to meet its A$500mn FY26 ARR target through a combination of SaaS flip uplift, net expansion and new customer growth. We see margin expansion resuming from FY24E onwards, which in combination with robust revenue growth should drive a mid-high teens EPS CAGR to FY26E, providing strong earnings visibility. TNE's share price has historically been driven by its strong rate of compound earnings growth underpinned by its leading market position, high R&D investment and defensive public sector end markets.
In addition, its analysts feel that "TNE's current valuation does not account for its above-trend earnings growth outlook, nor the defensiveness of its earnings in a more challenging macro environment."
Goldman has a buy rating and $18.05 price target on its shares.
Webjet Limited (ASX: WEB)
Another ASX growth share that has been given the thumbs up by Goldman Sachs is online travel booking company Webjet.
Its analysts are very positive on the company's WebBeds business and expect it to benefit greatly from structural growth opportunities. It also feels that the overall business is significantly stronger compared to pre-COVID times. It said:
Our Buy thesis on WEB is premised on 1) WEB demonstrating strong cash generation as the market recovers while current valuation continues to be impacted by macro concerns 2) We believe WEB's Bedbanks business offers a structural growth opportunity and expect it to drive scale benefits, underpinned by system changes and ERP upgrades as WEB goes through the recovery cycle. 3) We believe the OTA business is exposed to the right channels with the ongoing shift towards digital bookings likely to aid WEB in growing its TAM as well as market share.
Goldman has a buy rating and $8.10 price target on the ASX growth share.
