Do you have a penchant for ASX growth shares? If you do, then it could be worth looking at the three in this article that brokers have named as buys.
Here's what they are recommending to clients today:
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Goodman Group (ASX: GMG)
According to a recent note out of Morgans, its analysts have retained their add rating and $36.65 price target on this industrial property giant's shares.
Although Goodman didn't update its guidance last month, it remains very positive on the company and its outlook. It said:
GMG has reaffirmed FY25 guidance for EPSg of +9%, being the first quarter since at least FY18 when the business hasn't upgraded guidance in Q3. Management note that while long-term demand remains intact, economic uncertainty is delaying customer decisions across the logistics market. Data centre demand however remains robust across GMG's portfolio of metro and low latency assets, which has seen development yields persist at c.9-10% (yield on cost), with mid-teen IRRs.
We continue to see the opportunity in GMG, which offers one of the highest quality exposures amongst our REIT coverage. In our opinion, the current share price implies a more conservative mix of data centre vs logistics production (A$bn pa) and margin (%), whilst retaining the upside should data centre demand prove as resilient as anecdotal reports suggest and GMG capable of extracting value from its access to power across power constrained infill markets.
Lovisa Holdings Ltd (ASX: LOV)
Another ASX growth share that has been tipped as a buy by brokers is Lovisa. Another recent note out of Morgans reveals that its analysts have retained their add rating and $35.00 price target on the fashion jewellery retailer's shares.
Although the company has just opened its 1,000th store, the broker doesn't believe it is anywhere near the end of its store rollout. Especially given the potential for a new brand to grow alongside the core Lovisa brand. It said:
Lovisa has announced (via LinkedIn) that it will reach a milestone achievement of opening its 1,000th store this week. We see this as a major milestone for the business and clearly signifies its presence as a global brand.
Led by Chairman Brett Blundy, it is our understanding that Lovisa is set to quietly launch a new jewellery concept in the UK called Jewells, with 7 initial stores and an online presence, targeting the demi-fine segment with ambitious plans for global expansion.
ResMed Inc. (ASX: RMD)
Analysts at Ord Minnett recently upgraded this sleep disorder treatment company's shares to a buy rating with a $46.50 price target.
The broker is feeling positive about ResMed's growth outlook thanks partly to robust top line growth and operating leverage. It explains:
Ord Minnett expects that solid operating leverage to be maintained, or even slightly increased, driven by a further widening in gross margin, discipline on selling, general and administration expenses, and greater production efficiencies. ResMed is in a strong position for continued growth in earnings, noting we forecast EPS growth of 14% in FY26, while the company's balance sheet can accommodate an increase in its share buyback program. Combined with an appealing valuation, Ord Minnett raises its recommendation on ResMed to Buy from Accumulate.
