If you are lucky enough to have $5,000 burning a hole in your pocket, then in could be worth putting it to work in the share market.
Especially given the quality ASX growth stocks out there that have the potential to generate big returns on your investments.
But which stocks could be buys for smart investors? Let's take a look at two that analysts rate as buys. They are as follows:
Megaport Ltd (ASX: MP1)
The first ASX growth stock that could be a buy this month is Megaport.
It is a technology company revolutionising how businesses connect their infrastructure. Its cloud-based platform allows users to create secure, scalable, and flexible networks in just a few clicks. This eliminates the need for traditional, costly networking hardware, making it a game-changer in the digital transformation space.
The team at Morgans is very bullish on Megaport's future, particularly due to its positioning in the artificial intelligence (AI) megatrend. It said:
Megaport is a global cloud connection network and the leading Network as a Service provider. It operates the largest data centre connection business in the world, connecting to 850 data centres through a fully automated, on-demand telco network. We think it is uniquely placed to help business move data globally and benefit from the growth of data related to both cloud computing and AI.
The broker has an add rating and $14.00 price target on Megaport's shares. This implies potential upside of almost 25% for investors from current levels.
Life360 Inc (ASX: 360)
Another ASX growth stock that could be a buy is location technology company Life360.
That's the view of analysts at Goldman Sachs, which believe that the Life360 family tracking app maker is destined to continue its strong growth long into the future.
This is thanks partly 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 [79.6mn] user base via advertising.
Goldman has a buy rating and $27.00 price target on its shares. This suggests that upside of 16% is possible for investors over the next 12 months.
