Share prices do not always move in line with the underlying progress of a business.
Even ASX shares that are expanding revenue, winning customers, and strengthening their competitive position can see their share prices fall during periods of market uncertainty.
When that happens, long-term investors sometimes get a rare chance to buy growing companies at more reasonable valuations.
Here are three ASX growth shares that have recently become cheaper and could be worth a closer look according to analysts.
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NextDC Ltd (ASX: NXT)
The first ASX growth share that could be worth considering is NextDC.
NextDC is one of Australia's leading data centre operators. Its facilities provide the power, cooling, and connectivity that cloud providers, enterprises, and government organisations rely on to store and process data.
Demand for data centre capacity has been rising rapidly as businesses move their operations online and adopt cloud computing services. More recently, the surge in artificial intelligence (AI) workloads has added another major driver of demand.
NextDC continues to expand its network of facilities across Australia and the Asia-Pacific region. As these centres fill with customers, the company has the potential to generate strong recurring revenue from long-term contracts.
Despite these powerful tailwinds, its share price has been caught up in the recent tech sector volatility.
Morgans sees this as an opportunity and has a buy rating and $20.50 price target on its shares. This implies potential upside of 60% for investors over the next 12 months.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share that could be an opportunity after recent weakness is Temple & Webster.
Temple & Webster is Australia's largest online-only furniture and homewares retailer. Unlike traditional furniture chains, the company operates an asset-light model without a large physical store network.
This approach allows the business to scale efficiently as online demand grows. While ecommerce has already transformed sectors like electronics and fashion, furniture remains relatively underpenetrated online in Australia.
So, with a large market opportunity and a relatively small share of it today, the company still appears to have plenty of room to grow over the long term.
Bell Potter is a big fan and has a buy rating and $13.00 price target on its shares. This suggests that upside of 75% is possible for investors between now and this time next year.
Xero Ltd (ASX: XRO)
A final ASX growth share that could be an opportunity after its pullback is Xero.
Xero provides cloud-based accounting software for small and medium-sized businesses. Its platform helps companies manage invoicing, payroll, expenses, and financial reporting in one place.
The company has built a large and loyal customer base across Australia, New Zealand, and the United Kingdom, while continuing to expand its presence in North America.
What makes Xero particularly interesting is its growing ecosystem of connected applications. Banks, payment platforms, and software developers integrate with the platform, which makes it increasingly embedded in the daily operations of its users.
This type of ecosystem can create strong customer loyalty and recurring subscription revenue over time.
UBS is very bullish. It currently has a buy rating and $174.00 price target on Xero's shares, which implies potential upside of over 100%.
