2 ASX growth shares to snap up while they're still down

Brokers see plenty of upside for these mainstay sector picks.

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These 2 ASX growth shares have been under pressure in the past 6 months. If you're hunting for ASX 200 stocks with genuine growth potential beyond 2026, Lendlease Group (ASX: LLC) and Temple & Webster Group Ltd (ASX: TPW) deserve close attention.

One is quietly reshaping its future in property and development, while the other is quietly reshaping the online retail landscape.

Despite recent share price volatility, both companies have the potential to become long-term leaders in their respective sectors.

Let's take a closer look.

Lendlease Group

Lendlease has experienced a complex 2025 with the share price losing 20% ground. While the ASX 200 stock has lagged the broader market, the company has undergone a significant operational turnaround.

Management exited international construction operations, simplified the business, returned to profitability, and lifted distributions. Despite these improvements, macroeconomic headwinds have weighed on investor sentiment and the share price.

Yet in property, turning the corner matters and Lendlease appears to be doing exactly that.

FY25 marked a return to profit, alongside sharply higher distributions, signalling improving fundamentals. A strong development pipeline, disciplined capital recycling, and ongoing cost-saving initiatives position the business for its next phase of growth.

At the current share price of $5.05, analysts see meaningful upside. The average 12-month price target sits at $6.30, implying a potential gain of 25% from current levels.

Temple & Webster Group

Temple & Webster is Australia's leading online furniture and homewares retailer. The ASX growth share is built on a simple but powerful idea: enabling customers to furnish their homes without ever setting foot in a store.

More than just selling couches and lamps, the company is capturing market share in a category still shifting from bricks-and-mortar to online.

At the time of writing, Temple & Webster shares are trading at $12.78, rising 1.8% yesterday. However, zooming out reveals a different picture. The ASX 200 stock is down 42% over the past six months.

That pullback followed a sharp correction in late November, after a trading update showed sales growth had moderated following a blistering run earlier in the year. While the short-term reaction was severe, the longer-term fundamentals remain compelling.

In FY25, Temple & Webster returned to profitability after heavy losses in FY24. Revenue climbed more than 20%, net profit improved significantly, and the business remained debt-free with a strong cash position.

Importantly, active customers reached record levels — a key sign of brand strength and sticky demand.

The broker community has taken notice. Most analysts rate the stock a buy or a strong buy, with an average 12-month price target of $20.42, implying 60% upside. The most bullish forecasts suggest potential upside of more than 118%.

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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