Analysts are always on the lookout for opportunities, and there are some very exciting ASX growth shares that have been rated as a buy.
We're going to examine two businesses that have been rated as buys by multiple analysts. While being highly rated isn't a guarantee of strong performance, I think it could be an encouraging sign of potential.
The financial power of both ASX growth shares is expected to increase strongly in the coming years, which could lead to very good returns.
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Catapult Sports Ltd (ASX: CAT)
Broker UBS describes Catapult as a sports technology company with two core segments: wearable tracking technology (performance and health) and video software analysis (tactics and coaching).
The core goals of the company are to help athletes and teams optimise performance, prevent injuries, and improve return-to-play rates.
UBS currently has a buy rating on the business, with a price target of $6.70. That suggests a potential rise of 25% over the next year.
The recent FY26 first-half result from the business showed UBS that the result was another confirmation of the broker's positive growth-based investment thesis.
UBS noted that annualised contract value (ACV) grew by 20% year over year to US$116 million. The wearables segment was the standout, delivering its highest-ever period of new pro team logo wins (276).
The broker also noted that the ASX growth share's operating leverage was again impressive, with an incremental margin of 56%, as the business continues to scale profitably. Revenue growth alongside operating leverage can help cash operating profit (EBITDA) grow at more than 30% per year, which could mean it reaches US$45 million of A$69 million by FY28.
UBS explained why it's confident in its growth expectations:
We've undertaken an extensive analysis into 3 key areas that support our forecasts and investment thesis.
(1) The remaining penetration opportunity is still significant and growing for Catapult's wearables product after having been in the market for over 10 years now.
(2) The ability for Catapult to cross-sell its video software to existing customers. We undertook a number of channel checks that show the uniqueness and differentiation of being able to integrate wearables physiological data with video analysis.
(3) Breakdown of key financial line items including GP margin, Variable costs, Fixed costs, and capex, which support our views around incremental Cash EBITDA margins.
Siteminder Ltd (ASX: SDR)
Siteminder is a software business that offers accommodation providers a range of solutions across the guest lifecycle, including distribution, bookings, operations management, and business intelligence.
UBS rates this ASX growth share as a buy, with a price target of $8.30. That implies a possible rise of 27% over the next year.
According to UBS, there were several positives in the Siteminder FY25 result, including achieving positive free cash flow, an acceleration of annual recurring revenue (ARR) to 27% with strong growth in the core business and additional smart products, rising profit margins, and profitable growth.
UBS likes the ASX growth share due to its market leadership position in a tech market with numerous greenfield opportunities. The broker thinks the company can achieve a revenue compound annual growth rate (CAGR) around 25% between FY25 to FY28.
Excitingly, UBS suggests the company could reach 73,000 customers (of a total of 950,000 addressable properties) by FY28 and 14% in the longer-term. This bodes well for the company's long-term potential.
