If you’re looking for growth shares to invest in, then you might want to get better acquainted with the ones listed below.
These two companies are targeting huge growth over the 2020s and could generate outsized returns for investors if they deliver on their plans. Here’s what you need to know about them:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
The first ASX share that is targeting strong growth over the long term is Domino’s. The pizza chain operator expects to achieve this through the expansion of its store network and same store sales growth.
In respect to its store expansion, at the end of FY 2020, the company had a network of 2,668 stores across the ANZ, European, and Japan markets. While this is a large number of stores, management still believes there is significant room for growth over the next decade. It aims to more than double its network to 5,500 stores by 2033. And that’s purely from the markets it is already operating in. Domino’s has the option to expand into new markets organically or through acquisitions.
As for its sales targets, Domino’s has a medium term target of growing its same store sales by 3% to 6% per annum. If it delivers on this, the combination of the two should underpin strong sales growth.
One broker that is a big fan of Domino’s is Bell Potter. It recently reiterated its buy rating and $99.30 price target on its shares.
SEEK Limited (ASX: SEK)
Another ASX share targeting huge growth over the 2020s is SEEK. It is the dominant job listings company in the ANZ region and has a number of growing businesses around the world. One of those is the Zhaopin business in China. It has been growing at a very strong rate in recent years and has become a key part of the SEEK business.
Thanks to Zhaopin and its investment in growth opportunities, SEEK is aiming to grow its revenue to a massive $5 billion later this decade. This is over three times larger than the revenue of $1,577.4 million it achieved in FY 2020.
Analysts at Credit Suisse are positive on the company’s future. They have an outperform rating and $28.50 price target on its shares.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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