Do you like growth stocks? Well, if you do and you are on the lookout for some new investments when the market reopens then read on.
Listed below are a couple of top ASX growth stocks that analysts have recently named as buys. Let's see what they are saying about these growing companies this month:
Breville Group Ltd (ASX: BRG)
The first ASX growth stock that could be a buy according to analysts is Breville.
It designs, develops, markets, and distributes small electrical kitchen appliances in the consumer products industry. As well as the eponymous Breville brand, the company's portfolio includes the Kambrook, Baratza, Sagem and Lelit brands.
Analysts at Ord Minnett are positive on the company. Particularly given how they believe that the company is on the brink of a return to form with accelerating sales growth. This is expected to be driven by new products and acquisitions. The broker recently said:
Breville has experienced a notable decline in its return on capital over the past five years, but Ord Minnett views FY24 as the cyclic allow for returns. Our projections indicate a rebound as sales growth accelerates and operational leverage improves. This sales growth is expected to stem from improved sales momentum, innovative product development, and recent strategic acquisitions.
Ord Minnett currently has an accumulate rating and $38.00 price target on the company's shares.
Readytech Holdings Ltd (ASX: RDY)
Another ASX growth stock that could be a buy right now according to analysts is Readytech.
It is a leading software as a service (SaaS) provider of mission critical software to the tertiary education, government, justice, and enterprise markets.
The team at Morgans is bullish on the company. With its shares trading at a deep discount to historic averages despite having strong growth prospects, its analysts believe that the software company is a great example of growth on offer at a reasonable price. They recently said:
Its products include student management, payroll and HR solutions, and enterprise resource planning (ERP) to local government and legal case management. RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.
Morgans currently has an add rating and $3.74 price target on its shares.
