Growth investors are spoilt for choice on the Australian share market. That's because the local market is home to a large number of high-quality ASX growth shares with bright long-term outlooks.
But which of the many growth shares out there could be quality options for investors in 2025?
Here are two that analysts think you should be watching very closely this year:
Breville Group Ltd (ASX: BRG)
The first ASX growth share that could be worth watching in 2025 is Breville.
Breville designs, develops, markets, and distributes small electrical kitchen appliances in the consumer products industry. It does this through the Breville, Kambrook, Baratza, Sagem and Lelit brands.
The team at Ord Minnett is positive on the company. Especially given how the company is on the brink of a return to form with accelerating sales growth. The broker expects this to be driven by a combination of new product launches and acquisitions. It 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.
IDP Education Ltd (ASX: IEL)
Another ASX growth share that could be worth watching closely this year is IDP Education.
It is a language testing and student placement company that was sold off by investors in 2024. This was due to concerns over tough operating conditions due to visa changes in key markets.
And while Goldman Sachs believes that FY 2025 will be a disappointing year operationally, it thinks that the selloff has created a buying opportunity for patient investors. Particularly given its belief that IDP Education is still winning market share and will return to sustainable earnings growth in FY 2026. It said:
We believe IEL's premium valuation is justified given the medium-term earnings potential driven by: (1) Structural growth in multi-destination placements, supplemented by an ongoing Australian recovery; (2) Ability to grow market share in the highly fragmented Canadian and UK SP markets; (3) Reinvestment in digital capabilities to increase competitive moat and generate new earnings streams.
Goldman Sachs currently has a buy rating and $19.00 price target on IDP Education's shares.
