3 beaten down ASX growth shares that could be dirt cheap

Analysts think these shares are too cheap to ignore.

| More on:
A man looking at his laptop and thinking.

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

While the market may have recently been trading at a record high, not all shares are faring as well.

For example, the three ASX growth shares listed below are still down significantly from recent highs.

Here's why analysts think that they could be too cheap to ignore at current levels:

Domino's Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator's shares are down 20% since this time last year. This has been driven by the company's underperformance due to inflationary pressures and management's failure to successfully execute its recovery plans.

The good news is that there are now signs that the company is finally moving on from its issues. This could potentially make it a great time to make a patient investment in the ASX growth share.

Morgan Stanley certainly believes this is the case. It recently put an overweight rating and $68.00 price target on its shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share that could be a bargain buy according to analysts is IDP Education. It is a leading language testing and student placement company with operations across the globe.

The last 12 months have been very turbulent for IDP Education due to the loss of its language testing monopoly in Canada and regulatory changes to student visas in a number of markets. This has led to its shares losing almost 40% of their value since this time last year.

Goldman Sachs believes the selling has been an overreaction and thinks investors should be snapping them up while they are down. Particularly given its belief that IDP Education "is likely to emerge through this period of short-term regulatory tightening with a more diversified business and stronger SP market position to capitalise on the long-term structural growth in international education."

It is for this reason that the broker has a buy rating and $26.60 price target on its shares at present.

Readytech Holdings Ltd (ASX: RDY)

Another beaten down ASX growth that Goldman Sachs is positive on is ReadyTech. It is a leading cloud-based ATO and ITO-compliant, human resources, payroll, time and attendance, and rostering software provider.

ReadyTech's shares are down approximately 15% from their recent highs despite its strong performance continuing in FY 2024.

Goldman believes this means that "RDY remains undervalued compared to SaaS peers on an absolute and growth adjusted basis."

Its analysts currently have a buy rating and $4.25 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Domino's Pizza Enterprises. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises, Goldman Sachs Group, Idp Education, and ReadyTech. The Motley Fool Australia has recommended Domino's Pizza Enterprises, Idp Education, and ReadyTech. 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

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Growth Shares

5 stellar ASX growth shares to buy for strong returns

Analysts think growth investors should be snapping up these stocks when the market reopens.

Read more »

A group of businesspeople clapping.
Growth Shares

2 of the best growth-focused ASX shares to consider buying in May

Analysts have very good things to say about these growth stocks.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Growth Shares

How ASX growth shares can become top dividend stocks

Are growth stocks passive income power plays in the making?

Read more »

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

2 top ASX growth shares I'd buy today

I’m bullish about these stocks.

Read more »

A young boy points and smiles as he eats fried chicken.
Growth Shares

The smartest ASX growth shares to buy with $500 right now

I’m bullish about ASX growth stocks at a good price.

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Growth Shares

Aussie investors: 3 ASX shares to buy and hold forever

Analysts think these buy and hold options are top picks right now.

Read more »

Elegant lady with make up wearing jewellery and sitting on a chair.
Growth Shares

Leading broker thinks this top ASX 200 stock's earnings can soar 130% by FY28

This stock could see enormous profit growth in the coming years.

Read more »

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Growth Shares

Two high-flying ASX shares: One upgraded, one downgraded

One of these high-flying shares could keep rising and one could fall.

Read more »