I'm a big fan of ASX growth shares and you will find a good number in my investment portfolio.
The good news for me, and for others with a penchant for growth, is that there are plenty of options out there to choose from.
For example, analysts currently have buy ratings and favourable price targets on the ASX growth shares listed below. Here's what they are saying about them:
Objective Corporation Ltd (ASX: OCL)
Analysts at Morgans think that Objective Corp could be a top option for growth investors. It is a leading provider of content, collaboration and process management solutions for the public sector in Asia Pacific and Europe.
Morgans has an add rating and $14.00 price target on its shares. This suggests that upside of approximately 19% is possible over the next 12 months.
The broker likes the company due to its defensive customer base, strong recurring revenue, and low churn. It said:
Because of this defensive customer base, the company has strong recurring revenue and low levels of churn. Global Public Sector software spend is anticipated to grow at a low double-digit rates over the near term as governments look to streamline workflow, improve security, and modernise legacy IT infrastructure. We see Objective as being a beneficiary of this trend. Objective has seen a strategic reset in its earnings in FY23 as it looks to prioritise subscription licencing revenue growth, streamline deployment of its solutions, and invest in product and sales support functions. Whilst this has recently weighed on the company's share price, we believe Objective should be well positioned to see long-term revenue growth rates and margins return in FY24 and beyond.
Treasury Wine Estates Ltd (ASX: TWE)
Goldman Sachs thinks that this wine giant could be an ASX growth share to buy. It currently has a buy rating and $15.20 price target on its shares, which implies potential upside of 22% for investors.
The broker is forecasting double-digit earnings growth through to at least FY 2024 thanks partly to its Penfolds business and its return to China. So, with its shares trading on lower than normal multiples, it feels that now is the time to invest. Goldman explains:
Our Buy rating on TWE is premised on accelerating double-digit EPS growth in FY24-27e driven by 1) continued global expansion of Penfolds, especially post the removal of China import tariffs on Australian wine; our recent channel checks suggest positive reception to the returning Australian sourced Penfolds and we expect a ~63pct pre-tariff recovery by 2027; and 2) its rank as the #1 luxury wine company in the US (most sales in luxury wine) with the recent acquisitions of Frank Family Vineyards (FFV) and DAOU which have been growth and margin accretive, combined with a stable portfolio of Premium Brands. TWE is trading modestly below the 5-year historical P/E average.
