If you're on the hunt for promising ASX growth shares with strong ratings this August, look no further. Here are two names analysts are favouring heavily,.
Aristocrat Leisure Ltd (ASX: ALL) and Treasury Wine Estates Ltd (ASX: TWE) are two picks that, if broker targets prove correct, are set for double-digit price gains.
Let's delve into why these stocks are generating buzz among investors.
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ASX growth shares in favour
Aristocrat Leisure shares finished the session on Tuesday nearly 3% higher at $50.99 each. As one of the world's leading gaming technology companies, the ASX growth share boasts a diverse portfolio spanning poker machines and online gaming.
Citi analysts are bullish on Aristocrat, forecasting strong earnings growth in the near term. According to my colleague James, the broker has an outperform rating and price target of $59.00 on its shares.
This implies 16% upside from the closing price on Tuesday.
Aristocrat's recent acquisition of NeoGames for $1.5 billion has also strengthened its position in the gaming industry, Citi says. This acquisition has formed the new 'Aristocrat Interactive' business, which the broker views positively for future growth.
What's more, the company's key mobile game, RAID, has returned to growth, and CIti expects this growth to be far higher than the broader market.
The ASX growth share is also rated a buy from consensus, according to CommSec.
Double-digit earnings growth for Treasury Wine Estates?
Treasury Wine Estates shares finished the trading session on Tuesday at $11.72, up around 1%. Known for its premium wine brands, including the renowned Penfolds, the stock has lifted around 8% this year.
Goldman Sachs is optimistic about Treasury Wine's future, giving it a buy rating and a $14.70 price target. This implies a potential 26% upside.
The broker sees "accelerating double-digit" earnings-per-share (EPS) growth each year across FY24-27 with the removal of Chinese tariffs and the expansion of the Penfolds business.
It also notes the ASX growth share's results have been stable, with the acquisition of DAOU Vineyards positioning the company well for future growth.
Treasury Wine's rank as the "number one luxury wine company" in the United States is a growth factor as well, it says.
Morgan's analysts share this view. They rate it a buy with a $15.03 price target on the ASX growth stock, suggesting a 28% potential upside.
Foolish takeout
ASX growth shares are those typically poised to grow faster than their respective markets. Aristocrat Leisure and Treasury Wine Estates are two such names.
It's important to remember the risks associated with growth stocks, and how they might play a part in a long-term strategy. As always, remember to conduct your own due diligence.
