Looking for growth stocks to buy in 2025?
If you are, then it could be worth looking at the three ASX 200 growth shares listed below.
They have been named as buys by brokers and tipped to rise strongly from current levels. Here's what they are saying about them:
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Goldman Sachs think this beaten down pizza chain operator could be an ASX 200 growth share to buy.
After a tough couple of years, the broker believes that Domino's fortunes could soon change thanks to its renewed focus on store unit economics. Goldman explains:
We believe that DMP's renewed focus on store unit economics and re-investment to ignite topline growth is rightly placed. While there is still significant progress to be made, we believe that earnings has troughed in FY24 and see a path of improvement through FY25.
The broker has a buy rating and $39.10 price target on its shares. This suggests that upside of 34% is possible from current levels.
Neuren Pharmaceuticals Ltd (ASX: NEU)
Another ASX 200 growth share that could be a buy is Neuren Pharmaceuticals.
It is a pharmaceuticals company that is developing new drug therapies to treat multiple serious neurological disorders that emerge in early childhood and have no or limited approved treatment options.
The team at Bell Potter is very bullish on the company and sees a lot of potential in the development of its NNZ-2591 therapy. It said:
Neuren Pharmaceuticals is a biotech company that is well-funded via its first asset, DAYBUE, which is an FDA approved trofinetide for the treatment of Rett syndrome. NEU's value is from its second asset, NNZ-2591, which is under development for rare diseases. NNZ-2591, if successful, could lead to a significant increase in revenue and earnings when brought to market. NEU looks attractive on a risk/adjusted basis after the recent sell-off.
Bell Potter has a buy rating and $25.00 price target on its shares. This implies potential upside of approximately 100% for investors from current levels.
Xero Ltd (ASX: XRO)
A third ASX 200 growth share that could be a buy for 2025 is Xero.
It is a global small business platform provider with approximately 4.2 million subscribers at the last count.
They are using its platform to manage core accounting functions like tax and bank reconciliation, and complete other important small business tasks like payroll and payments.
Goldman Sachs likes the company due to its huge total addressable market (TAM). The broker explains:
Xero is a Global Cloud Accounting SaaS player, with existing focuses in ANZ, UK, North American and SE Asian markets. We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM.
Given the company's pivot to profitable growth and corresponding faster earnings ramp, we see an attractive entry point into a global growth story with Xero our preferred large-cap technology name in ANZ – the stock is Buy rated.
Goldman currently has a buy rating and $201.00 price target on its shares. This implies potential upside of 21% for investors over the next 12 months.
