Investors with a penchant for ASX 200 growth shares may want to check out the three named below.
That's because analysts recently named them as buys and are tipping them to generate double digit returns over the next 12 months.
Here's what they are saying about them:
Domino's Pizza Enterprises Ltd (ASX: DMP)
Goldman Sachs is positive on this pizza chain operator and believes it could be a top ASX 200 growth share to buy now.
Its analysts have a buy rating and $38.30 price target on its shares. This implies potential upside of 19% for investors over the next 12 months.
Commenting on its recent mass store closures, the broker said:
Despite significant work ahead for the company, we agree with the strategic pivot to refocus on unit economics as a first step and are encouraged by the swift action of the new CEO. That said, comfort around SSSG inflection to positive momentum, especially in Japan and France will be most critical for the path forward and we will focus on this in 1H25 results.
HMC Capital Ltd (ASX: HMC)
Bell Potter thinks that this diversified alternative asset manager could be an ASX 200 growth share to buy.
It has a buy rating and $12.90 price target on the company's shares. This suggests that upside of 29% is possible for investors from current levels.
The broker believes that HMC is well-placed for strong funds under management (FUM) growth after a transformation period. It said:
Transformational period for HMC with the establishment of new platforms across Digital Infrastructure, Energy Transition and Private credit in CY24. While substantial costs were also added across the half, we think HMC should be able to leverage off this base as the platform is reaching a scale and breadth sweet spot that could allow it to reach 3-5yr FUM target of $50bn (BPe $50bn by FY30).
Life360 Inc (ASX: 360)
Analysts at Bell Potter are also feeling bullish about Life360. It is the location technology company behind the hugely popular Life360 app. At the last count, there were over 70 million monthly active users (MAU) across more than 150 countries using the app.
Bell Potter has a buy rating and $27.75 price target on the ASX 200 growth share. This implies potential upside of 13% from current levels.
Its analysts are expecting a stellar FY 2024 result from Life360 and then strong guidance for the year ahead. It recently said:
Life360 remains a key pick of ours for the following reasons: 1. We expect a strong 2024 result with some chance of a beat to the EBITDA guidance; 2. We anticipate strong 2025 guidance with revenue growth exceeding 20% and positive statutory EBITDA; and 3. We foresee the company being added to the S&P/ASX 100 Index in early March's rebalance.
