2 exciting ASX growth shares to buy in July

Analysts have put buy ratings on these stocks. But why are they bullish?

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With a new month on the horizon, now could be a good time to look at any additions you could make to your portfolio.

And if you're a fan of growth shares, then it could be worth checking out the two ASX shares listed below that have been named as buys.

Here's what you need to know about them:

Life360 Inc (ASX: 360)

Analysts at Bell Potter think that this location technology company's shares could still be great value despite rocketing this year. The broker currently has a buy rating and $17.75 price target on its shares.

It has been impressed with Life360's quicker than expected growth and believes this bodes well ahead of the seasonally strong third quarter of the year. The broker said:

Life360 put out a media release saying it has just reached 2m global paying circles. This was notably ahead of our forecast which was 1.98m at 30 June 2024 and an increase of 86k in 2Q2024. The figure at 31 March 2024 was 1.90m so this indicates the company has already added c.100k this quarter and will exceed the 96k added in 1Q2024. This far exceeds the growth of 73k in 1Q2023 and 62k in 2Q2023 which was admittedly after the material price rises which were put through for iOS users in the US in 4Q2022. We also note that Q1 and Q2 are traditionally not the strongest quarters for paying circle growth and this rather is in Q3 with back-to-school in the US so the current momentum suggests another quarter of around 100k or more in 3Q2024.

Light & Wonder Inc. (ASX: LNW)

Over at Morgans, its analysts are feeling bullish about Light & Wonder and see it as an ASX growth share to buy.

Light & Wonder, which was formerly known as Scientific Games, is an American cross-platform global games company that provides gambling products and services. Morgans currently has an add rating and $172.00 price target on its shares.

After winning market share in Australia, the broker believes the company is well-positioned to repeat this in the United States. It said:

We initiate coverage of Light & Wonder (LNW) with an ADD rating and a 12-month target price of A$172. LNW develops gaming content, hardware and technology solutions for traditional land-based, as well as digital customers and players. LNW is dual-listed on the Nasdaq (primary listing) and ASX. Since restructuring and rebranding from Scientific Games a few years ago, its experienced team has captured significant land-based share in Australia. We believe LNW can replicate this in the US. Additionally, its digital segments are also performing well with its social casino division, SciPlay, significantly outpacing the rest of the market. On our estimates, LNW is on an attractive FY25F PER (based on EPSA) of 14x, with an EV/EBITDA of 9x and a free cashflow (FCF) yield of 6%.

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 Light & Wonder. The Motley Fool Australia has recommended Light & Wonder. 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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