Brokers say these ASX growth shares are top buys in May

Analysts reckon these shares could offer big returns.

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If you are looking for some ASX growth shares to buy in May, then look no further.

That's because two top options that have been named as buys by brokers are listed below. Here's what you need to know about them:

Life360 Inc (ASX: 360)

The first ASX growth share that could be in the buy zone is Life360. It is the location technology company behind the eponymous Life360 app.

This app helps users protect the people, pets and things they care about most, with a range of services including location sharing, safe driver reports, and crash detection with emergency dispatch.

The company has been growing at a rapid rate in recent years. So much so, it recently hit approximately 66 million monthly active users (MAU) across more than 150 countries.

This went down well with analysts at Bell Potter. In response to the company's market update, it put a buy rating and $16.25 price target on its shares. This implies a potential upside of 18% for investors from current levels.

The broker commented:

The launch of tiered membership in Australia this quarter is also another positive and this appears imminent following a price increase for existing paying subscribers last week. We also see some potential of a guidance upgrade but not until the second half of the year. There is also the prospect of the company recommencing the process of a dual listing in the US following the successful recent IPO of Reddit.

Tyro Payments Ltd (ASX: TYR)

Another ASX growth share that has been named as a buy is Tyro Payments.

It is a technology-focused provider of payment solutions and value-adding business banking products. At the last count, there were almost 70,000 Australian merchants partnering with Tyro.

This makes Tyro Australia's fifth largest merchant acquiring bank by number of terminals in the market, behind the four major banks.

Morgans believes the company's shares are cheap at current levels following a selloff last year. The broker has an add rating and a $1.47 price target on its shares. This implies a potential upside of 52% for investors.

Its analysts commented:

TYR sold off heavily in 2023 affected by the broad pull back in technology stocks and overall concerns regarding its earnings trajectory. However, we believe FY24 will show significantly improved business momentum, importantly driven by a much greater focus on lifting overall profitability. TYR still trades at a significant discount to valuation.

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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