If you’re looking for growth shares, then look no further. Listed below are two ASX 200 growth shares which have been tipped for strong growth in the future.
Here’s why analysts rate them as buys:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
The first ASX 200 growth share to consider is Domino’s. It is one of the world’s largest pizza chain operators with ~3,200 stores across the ANZ, Asia-Pacific, and European regions.
Its shares have fallen like dominoes in 2022 due to a softer than expected performance during the first half in Asia and a de-rating of growth shares.
The team at Morgans believe this has created a buying opportunity for investors and has recently upgraded its shares to an add rating with a $115.00 price target.
It said: “DMP remains a growth story. It has a platform to deliver a positive trajectory of sales and earnings as its store rollout strategy continues and network efficiencies increase. After a period of sustained weakness in the share price, we think now is the time to give DMP another look. We upgrade to ADD.”
NextDC Ltd (ASX: NXT)
Another ASX 200 growth share that could be a buy is NextDC. It is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud.
Especially given its world class network of data centres and its expansion into edge centres. The company also has its eyes on the Asia market and has opened up offices in a couple of key markets.
Citi is a fan and was impressed with its half year results. It currently has a buy rating and $14.55 price target on NextDC’s shares.
The broker said: “NXT delivered a strong result with increasing utilisation of Gen 2 assets driving solid revenue growth and margin expansion, while revenue metrics improved HoH (revenue per MW up 7% HoH). While the current backlog underpins FY23e earnings, we have lowered our forecasts to reflect a slower ramp and conversion of the pipeline. We maintain our Buy call and see the conversion of Hyperscale customer commitments in Sydney and Melbourne as the next key catalyst.”
The post 2 fantastic ASX 200 growth shares to buy according to analysts appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro owns NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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