3 buy-rated ASX growth shares tipped to rise 30% to 125%

Brokers expect big returns from these shares over the next 12 months.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Do you want to buy some ASX growth shares for your portfolio? If you do, then it could be worth checking out the three named below that analysts are bullish on.

Here's what they are recommending to clients:

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company

Image source: Getty Images

Life360 Inc. (ASX: 360)

One company that continues to build momentum is Life360. It is best known for its family safety app, which allows users to track the location of loved ones and receive alerts related to driving behaviour, emergencies, and device safety.

While the app originally focused on location sharing, Life360 has gradually expanded its platform to include a range of subscription services such as roadside assistance, identity protection, and emergency response features.

The strength of the business lies in its growing global user base. Millions of families now rely on the platform daily, which gives the company opportunities to increase monetisation through premium subscriptions and additional services.

With the business moving toward stronger profitability and expanding its product ecosystem, Life360 has the potential to continue growing strongly over time.

This week, Bell Potter put a buy rating and $40.00 price target on its shares. This implies potential upside of 85% for investors over the next 12 months.

Pro Medicus Ltd (ASX: PME)

Another ASX growth share worth watching is Pro Medicus.

The healthcare technology company develops advanced medical imaging software used by hospitals and radiology groups around the world.

Its Visage platform allows radiologists to view complex scans quickly and efficiently, which improves productivity and patient outcomes.

What makes Pro Medicus particularly interesting is its success in winning long-term contracts with large hospital networks in the United States. These deals often run for several years and can generate significant recurring revenue.

As global demand for medical imaging continues to grow, Pro Medicus appears well placed to keep expanding its footprint internationally.

Morgans has a buy rating and $275.00 price target on its shares. This suggests that its shares could rise 125% between now and this time next year.

REA Group Ltd (ASX: REA)

A final ASX growth share that continues to impress is REA Group.

REA operates realestate.com.au, the dominant online property marketplace in Australia. The platform has become the go-to destination for Australians searching for homes, rental properties, and real estate data.

Its strong market position allows the company to charge real estate agents premium prices for listings and advertising products. This has helped REA deliver consistently strong earnings growth over many years.

Beyond Australia, the company also has investments in international property portals, which provide additional growth opportunities.

With Australia's property market remaining highly active and digital advertising continuing to evolve, REA Group still appears well positioned for long-term expansion.

UBS has a buy rating and $218.90 price target on REA Group's shares. This implies potential upside of over 30% for investors over the next 12 months.

Motley Fool contributor James Mickleboro has positions in Life360, Pro Medicus, and REA Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Growth Shares

3 fantastic ASX shares that could be much bigger by 2030

Wanting to invest for the long-term? Here are three shares to consider.

Read more »

Excited couple celebrating success while looking at smartphone.
Growth Shares

3 ASX growth shares I want to buy and hold forever

For a long-term investment, I want a business that can keep evolving.

Read more »

Two smiling work colleagues discuss an investment at their office.
Growth Shares

Why I'd buy and hold Pro Medicus and DroneShield shares

These are two shares where I am much more interested in what the businesses could become than what happens over…

Read more »

Woman with her kitten on a laptop in her home office.
Growth Shares

3 top ASX shares for beginners to buy now

I think starting with businesses you can actually understand makes the ups and downs of investing much easier to handle.

Read more »

Happy investor on tablet with finance graphs rising in overlay.
Growth Shares

2 ASX shares I want to hold until 2030 and beyond

Both businesses have already achieved plenty. The amount of growth still available is why I would want to own them…

Read more »

flying asx share price represented by man flying remote control drone
Growth Shares

Why are DroneShield shares suddenly rising again?

A guidance miss, then a sharp bounce. What changed?

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
Growth Shares

Where I'd invest $25,000 into ASX shares in August

I outline why these shares could be top picks for investors this month and for years to come.

Read more »

A female soldier flies a drone using hand-held controls.
Growth Shares

ASX defence shares have been the trade of the decade. Is it too late to join the party?

Order books are growing. Share prices aren't.

Read more »