If you’re a fan of growth shares, then you may want to look closely at the two shares listed below.
Here’s why these growth shares have been rated as buys:
Adore Beauty Group Limited (ASX: ABY)
The first ASX growth share to look at in March is Adore Beauty. It is Australia’s number one pureplay online beauty retailer. Last month it released its half year results and revealed record revenue and customer numbers. In respect to the former, Adore Beauty delivered an 18% increase in revenue to $113.1 million. This is still only a small portion of the $11 billion Australian beauty and personal care market, which is in the early stages of its shift online. This gives the company an extremely long growth runway.
UBS is a positive on the company and currently has a buy rating and $4.70 price target on its shares. This suggests potential upside of greater than 100% from current levels.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Another growth share to look at is Domino’s. It is one of the world’s largest pizza chain operators with stores across the ANZ, Asia-Pacific, and European regions. Its shares have been sold off heavily this year amid concerns over the performance of its Asian operations and the potential impact of food inflation on margins. While this is disappointing, it may have created a buying opportunity for patient long term focused investors. Particularly with management aiming to double its store network over the next decade and also expand its addressable market with acquisitions.
Morgans appears to see the recent share price weakness as a buying opportunity. It recently upgraded Domino’s shares to an add rating with a $115.00 price target. This suggests potential upside of 44% from the current Domino’s share price of ~$79.72.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and Dominos Pizza Enterprises 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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