2 ASX growth shares to buy for when the market rebounds

A number of growth shares have been beaten down this year amid the market volatility. While this is disappointing, it could have created a buying opportunity for investors once the volatility ends.

Here’s why these growth shares could be worth owning when the market rebounds:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first 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.

While it has a sprawling network across these regions, management still sees scope for significant expansion over the next decade. It is aiming to more than double its network to 6,650 stores in existing markets by 2033.

And while trading conditions are not easy at present and the company is likely to be battling food and wage inflation, the selloff of its shares appears to have been overdone according to analysts at Morgans. Particularly given its aforementioned growth plans.

Morgans commented:

The engine of DMP’s growth is the rollout of new stores. Although near-term store rollout may be slower than DMP would like, the medium-term opportunity is absolutely undiminished, as evidenced by the reiteration of the 2033 outlook

In light of this, the broker has put an add rating and $93.00 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

Another growth share to look at buying for the rebound is TechnologyOne. It is an enterprise software provider servicing the government, financial services, health and community services, education, and utilities and managed services markets.

TechnologyOne’s shares have fallen heavily this year despite it recently delivering a 19% increase in half year revenue to $172.5 million and a 23% jump in annual recurring revenue (ARR) to $288.5 million. Not even management reiterating its belief that it will grow its ARR to $500 million by FY 2026 has stopped the rot.

Analysts at Goldman Sachs appear to see this as a buying opportunity. Particularly given how the broker suspects that TechnologyOne could even outperform its ARR target, noting that the risks “are skewed to the upside.”

Goldman has a buy rating and $13.30 price target on the company’s shares.

The post 2 ASX growth shares to buy for when the market rebounds appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and TechnologyOne Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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