Finding ASX growth shares trading at half their broker targets is unusual, but right now there are several doing just that.
Earnings season has ended and analysts have refreshed their price targets across hundreds of companies.
The three below have all fallen heavily over the past year.
All three are still growing earnings, which is what makes the gap interesting.
Image source: Getty Images
Why these ASX growth shares were sold off
The cause is the same in each case.
Interest rate expectations have moved sharply, with all four major banks now forecasting another rise this year.
Higher rates hit companies valued on distant earnings hardest, and they hit companies funding growth with debt harder still.
None of these three fell because of a downgrade.
Each of them reported growth in FY26.
1. NEXTDC Ltd (ASX: NXT)
NEXTDC closed Tuesday at $12.52 after falling 14% in a month.
UBS has a buy rating with a $23.45 target, implying 88% upside.
The FY26 result was a record.
Net revenue rose 16% to $405.0 million and underlying EBITDA rose 15% to $248.8 million, both above guidance.
Contracted utilisation surged 202% to 740.1 megawatts and statutory net profit turned positive at $82.1 million.
FY27 guidance points to net revenue of $615 million to $640 million, growth above 50%.
The catch is the capital expenditure required to deliver it, guided at $5.25 billion to $5.75 billion.
2. Nine Entertainment Co Holdings Ltd (ASX: NEC)
Nine Entertainment is the cheapest and most contrarian of the three.
Shares closed at 86 cents, down 48.19% over twelve months and barely above a 52-week low of 83.5 cents.
Morgan Stanley has a buy rating with a $1.40 target, implying 63% upside.
FY26 revenue rose 3% to $2.19 billion on a continuing business basis and group EBITDA jumped 17% to $379 million.
Net profit after tax increased 7% to $142.4 million and earnings per share before amortisation rose 11% to 9.3 cents.
The QMS Outdoor acquisition contributed $55 million of EBITDA in its first three months.
Similarly, digital subscription revenue grew 12%, and Nine has signed content licensing deals for AI applications including one with Microsoft.
Chief executive Matt Stanton explained the reshaping of the portfolio.
Over the past 12 months, we have made material changes to our business portfolio, focusing on growth and digital assets whilst reducing our exposure to structurally challenged and smaller assets. These transactions add to our operational scale and create a higher growth and more resilient Nine, better positioned to create long term sustainable value for our shareholders.
The final dividend of 3.0 cents is unfranked, and management expects that to continue.
3. Zip Co Ltd (ASX: ZIP)
Zip has the most bullish coverage on the ASX.
All twelve analysts covering the company rate it a buy or strong buy, with an average target of $4.56 against a $2.31 share price.
That implies roughly 95% upside, with the most optimistic target at $6.03.
FY26 cash EBTDA rose 57.9% to $268.9 million and revenue climbed 24.7% to $1,336.1 million.
Net profit after tax increased 45.7% to $116.4 million and the operating margin expanded from 15.8% to 20.0%.
Management has guided FY27 cash EBTDA to $340 million, up around 26%.
The United States now produces about two-thirds of revenue, and that is where the growth is coming from.
Foolish takeaway
Broker targets are opinions, not forecasts, and a 90% implied upside usually means high uncertainty rather than free money.
What these three ASX growth shares share is a market that has repriced their respective multiples.
I would rather buy a company growing revenue at 16% to 25% after a 50% fall than chase one already compounding.
