The market may be trading within sight of a record high, but that doesn't mean there aren't big potential returns still available to investors.
For example, two ASX 200 growth shares that analysts have named as buys and tipped to rise very strongly are listed below.
Here's what they are saying about these shares:
Megaport Ltd (ASX: MP1)
The first ASX 200 growth share that could be destined to deliver big returns for investors is Megaport.
It is leading global provider of elastic interconnection services with a footprint in over 800 data centres across the world.
Demand for the company's services has been growing strongly in recent years thanks to the structural shift to the cloud. The good news is that Morgans believes this positive form can continue due to the cloud computing and artificial intelligence (AI) megatrends.
Its analysts recently said:
Megaport is a global cloud connection network and the leading Network as a Service provider. It operates the largest data centre connection business in the world, connecting to 850 data centres through a fully automated, on-demand telco network. We think it is uniquely placed to help business move data globally and benefit from the growth of data related to both cloud computing and AI.
Morgans currently has an add rating and $12.50 price target on its shares. Based on its current share price of $7.40, this implies potential upside of 69%.
Web Travel Group Ltd (ASX: WEB)
Another ASX 200 growth share that could be a buy is Web Travel Group. It is a business to business (B2B) travel company operating the WebBeds business. It recently spun off its online travel agency business Webjet Group (ASX: WJL) into a separate listing.
The team at Goldman Sachs is positive on the company and believes that recent share price weakness has created a compelling buying opportunity. The broker said:
WEB is the second largest Hotel Bed wholesaler globally with <10% of the global hotel wholesale market. We are Buy rated on WEB as we have confidence that WEB will be able to grow TTV in line with its FY25/30 targets of A$5bn/A$10bn respectively. In particular, we believe WEB is well placed to continue to grow in key US/APAC growth markets, though expect revenue margin to lower towards ~6.3% over time as the company expands into lower margin US/APAC markets. WEB is trading below fair value, on our estimates.
Goldman Sachs currently has a buy rating and $6.70 price target on its shares. Based on its current share price of $4.34, this implies potential upside of 54% for investors from current levels.
