If you have a penchant for ASX 200 growth shares, then it could pay to listen to what analysts at Macquarie Group Ltd (ASX: MQG) are saying.
That's because the broker has recently named two that it thinks are buys and have the potential to generate big returns for investors over the next 12 months.
In fact, Macquarie believes that both shares could rise over 20% from where they currently trade.
Let's see what the broker is saying about these growing companies:
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Light & Wonder Inc. (ASX: LNW)
The first ASX 200 growth share that could be a buy according to Macquarie is Light & Wonder.
It is a global gaming and entertainment company with exposure to both land-based and digital gaming.
Light & Wonder is currently riding a wave of digital transformation in the global gaming industry. And thanks to its pivot toward recurring, content-led revenue streams, it is starting to accelerate its earnings growth.
The team at Macquarie is feeling very bullish about the company's outlook. It highlights that management is aiming to hit $2 billion in EBITDA target by 2028. This would mean a compound annual growth rate (CAGR) of 9.5% per annum.
And while the broker is forecasting US$1,941 million 2028 adjusted EBITDA, which is 3% below its target, this is still 5% above the consensus estimate of US$1,854 million. It commented:
Light & Wonder is setup to deliver +9.5% average annual adjusted EBITDA growth over three-years to hit the 2028 US$2bn target, albeit it is a touch above our forecast growth (+8.5%).
Macquarie has an outperform rating and $188.00 price target on its shares. This implies potential upside of 22% for investors over the next 12 months.
Siteminder Ltd (ASX: SDR)
Another ASX 200 growth share that Macquarie is tipping as a buy is Siteminder.
It is a fast-growing software-as-a-service (SaaS) company that helps hotels and accommodation providers manage bookings across multiple channels.
Siteminder's cloud-based platform connects properties with major travel websites like Booking.com, Airbnb, and Expedia, streamlining availability, pricing, and reservations in one place.
Macquarie is bullish on the company and believes rapid growth is on the cards in the coming years. Its analysts said:
We think SDR will rapidly grow medium-term revenue on continued 1) market share growth; and 2) transaction product adoption. Smart Platform represents material upside revenue potential and if successfully executed should support a long-term re-rate.
The broker has an outperform rating and $6.09 price target on its shares. Based on its current share price of $4.54, this implies potential upside of almost 35% for investors between now and this time next year.
