The Australian share market may be trading within sight of a record high, but not all shares have climbed with it.
A good number of ASX growth shares have been sold off over the past 12 months as investors rotated into the large miners and gold and silver.
While this is disappointing for growth investors, it has arguably created an incredible buying opportunity for those that have capital to deploy.
Let's take a look at three that analysts think could be worth considering before they rebound. They are as follows:
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NextDC Ltd (ASX: NXT)
The first ASX growth share that could rebound is NextDC.
NextDC operates data centres that support cloud computing, enterprise IT, and increasingly AI-related workloads. Demand for data storage and processing continues to rise, even if short-term market sentiment fluctuates.
Its share price has been pressured by concerns over the AI boom and interest rates, but the long-term need for digital infrastructure has not gone away. As customers scale cloud and AI usage, high-quality data centre capacity remains critical.
The team at Macquarie thinks this could be a buying opportunity for investors. It recently put an outperform rating and $22.30 price target on its shares.
TechnologyOne Ltd (ASX: TNE)
Another ASX growth share that could be worth buying before a rebound is TechnologyOne.
TechnologyOne develops enterprise software for governments, universities, and large organisations. These customers tend to be sticky, long-term users, which gives the company a high level of revenue visibility.
While its shares have pulled back alongside the broader tech sector, its fundamentals remain very much intact. The ongoing shift to a software-as-a-service model continues to lift recurring revenue and cash generation, while international expansion provides an additional growth lever. In fact, management believes it can double in size every five years because of these drivers.
If market sentiment toward quality software businesses improves, TechnologyOne's consistency and long track record could see investors re-rate the shares.
UBS is bullish on TechnologyOne and has a buy rating and $38.70 price target on its shares.
Temple & Webster Group Ltd (ASX: TPW)
A final ASX growth share to consider before a rebound is Temple & Webster.
The online furniture retailer has been weighed down by softer consumer spending and a de-rating of tech valuations. However, the business continues to operate in a large addressable market where its market share remains relatively small.
Temple & Webster has been improving customer retention, private-label penetration, and operational efficiency. These factors position the company to benefit disproportionately if trading conditions normalise.
Bell Potter thinks there's major upside ahead for investors. It has a buy rating and $19.50 price target on its shares.
