Where to invest $5,000 in ASX growth shares for big returns

Analysts think these growth stocks could rocket from current levels.

Do you have $5,000 to invest in the share market? Do you like ASX growth shares?

If you've said yes to both, then read on! That's because listed below are three exciting ASX growth shares that brokers have named as buys and tipped to rise strongly from current levels.

Here's what they are saying about them:

Man pointing an upward line on a bar graph symbolising a rising share price.

Image source: Getty Images

Readytech Holdings Ltd (ASX: RDY)

The first ASX growth share that could be a top option for a $5,000 investment is Readytech.

It owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government. These businesses operate in niches that are under-served by both large and small enterprise software competitors.

Goldman Sachs is a fan of the company and highlights its high (and growing) levels of recurring revenue, as well as its very low churn levels. It expects the company to "continue to grow mid-teens organically while making accretive acquisitions."

The broker currently has a buy rating and $4.25 price target on its shares. This implies potential upside of 48% for investors.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX growth share that analysts are bullish on is Treasury Wine. It is one of the largest wine companies in the world and the owner of a portfolio of high quality and popular brands. This includes Wolf Blass, 19 Crimes, and the jewel in the crown, Penfolds.

Analysts at Morgans are positive on the company. Particularly given a recent acquisition in the United States, which they feel could be a key driver of growth in the medium term. In fact, the broker highlights that "if TWE delivers on its investment case, there is material upside to our valuation."

Morgans currently has an add rating and $14.80 price target on its shares. This suggests that upside of 36% is possible for investors from current levels.

Tyro Payments Ltd (ASX: TYR)

Tyro Payments could be another ASX growth share to buy according to brokers.

It is a payments company offering instore, online, and on-the-go payment solutions to retailers across Australia.

The team at Morgans thinks its shares are undervalued and is tipping them as a buy. The broker believes that Tyro's FY 2024 results "demonstrated improved profitability through the benefits of TYR's pricing transformation program, and efficiency improvements."

It has an add rating and $1.63 price target on its shares. This implies potential upside of 70% for investors over the next 12 months.

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, ReadyTech, and Tyro Payments. The Motley Fool Australia has recommended ReadyTech, Treasury Wine Estates, and 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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