If you are a fan of ASX growth shares, then you will be pleased to know that analysts have recently named a number as buys.
Here's what you need to know about these top stocks:
Image source: Getty Images
Light & Wonder Inc. (ASX: LNW)
Bell Potter thinks that this leading global cross platform games company could be an ASX growth share to buy. While it acknowledges that the "loss of future Dragon Train revenues is disappointing", it remains positive on the future. Particularly given "LNW's cross-platform strategy and leading scale producing a portfolio of high-performing games in both land-based and digital markets."
Bell Potter currently has a buy rating and $165.00 price target on the company's shares.
Megaport Ltd (ASX: MP1)
Another ASX growth share to buy could be Megaport. It is a leading global provider of elastic interconnection services. Megaport has been growing at a rapid rate in recent years due to increasing demand for its services thanks to the cloud computing boom. Analysts at Goldman Sachs believe this can continue due to "strong structural tailwinds from the adoption of public cloud including multi-cloud usage and the transition towards NaaS technologies."
Goldman has a buy rating and $12.00 price target on its shares.
NextDC Ltd (ASX: NXT)
Over at Morgans, its analysts think that NextDC could be an ASX growth share to buy. It is one of Asia's most innovative data centre-as-a-service providers. Morgans believes that the company is well-placed for growth in the coming years thanks to the aforementioned cloud computing boom. So much so, it estimates that NextDC's operating earnings could double based on existing agreements.
The broker currently has an add rating and $20.50 price target on its shares.
Readytech Holdings Ltd (ASX: RDY)
A fourth ASX growth share that has been named as a buy is Readytech. It owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government. Goldman Sachs is also a fan of the company. It likes Readytech due to its growing recurring revenue and low churn levels. The broker expects this to help the company "continue to grow mid-teens organically while making accretive acquisitions."
Goldman currently has a buy rating and $4.25 price target on its shares.
Xero Limited (ASX: XRO)
A final ASX growth share that could be a buy is Xero. It is a cloud accounting platform provider with over 4 million subscribers. Goldman highlights that as large as Xero's subscriber base may look on paper, it is just a fraction of its estimated total addressable market of 100 million small to medium sized businesses. As a result, the broker feels that Xero has a significant growth runway and feels it is "very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds."
Goldman has a conviction buy rating and $201.00 price target on Xero's shares.
