If you have a penchant for ASX growth shares like I do, then read on!
That's because the two in this article have not only been named as buys but have been tipped to rise at least 30% from current levels. Here's what analysts are saying about them:
Life360 Inc (ASX: 360)
The team at Goldman Sachs thinks that this location technology company could be a quality ASX growth share to buy now.
It has a buy rating and $27.00 price target on its shares. This suggests that upside of 30% is possible for investors between now and this time next year.
The broker likes Life360 due to its huge total addressable market (TAM) and significant user monetisation opportunity. It explains:
We estimate Life360 is exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US. The company has demonstrated its pricing power and is now exploring the latent monetisation opportunity of its >60mn user base via advertising.
Goldman also highlights that its shares are undervalued compared to peers. It adds:
Life360's Subscription business currently trades at a discount to global subscription app peers when adjusting for its superior growth outlook. We see scope for re-rating as Life360 demonstrates operating leverage, ongoing subscription growth and user monetisation via ads. We are Buy rated on Life360.
Pro Medicus Limited (ASX: PME)
Bell Potter thinks that this health imaging technology company could be an ASX growth share to buy.
Its analysts have put a buy rating and $280.00 price target on its shares. Based on its current share price, this implies potential upside of 33% over the next 12 months.
Commenting on the company, the broker said:
Pro medicus is a leading health imaging IT provider. It's leading product is the Visage 7 Enterprise Viewer (the Visage Viewer). It is an essential component of a modern PACS with its main advantage being speed. Using this system the radiologist is able to view medical images from all major modalities at lightning fast speed including prior exams.
Visage 7 is the fastest, most versatile viewing software on the market and it is the key reason why Pro medicus has been successful in winning numerous high profile hospital contracts in the US, ahead of some of the largest global names in the industry.
