Experts name 3 ASX growth shares to buy with enormous upside potential

Concept image of a businessman riding a bull on an upwards arrow.

Concept image of a businessman riding a bull on an upwards arrow.Are you interested in adding some more ASX shares to your portfolio?

Three ASX growth shares that could be worth considering are listed below. Here’s what you need to know about them:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies with a collection of world class poker machines and mobile games that continue to win market share from rivals. But management isn’t resting on its laurels. It is planning an expansion into the lucrative real money gaming market. Combined with its major share buyback, this all bodes well for its earnings per share growth in the coming years.

Morgans is a fan of the company and has an add rating and $43.00 price target on its shares. This implies over 28% upside from the current Aristocrat share price of $33.47.

NextDC Ltd (ASX: NXT)

Another ASX growth share to look at is NextDC. It is a leading data centre operator which has been benefiting greatly from the shift to the cloud, which accelerated during the pandemic. The good news is that this shift still has a long way to go, which bodes well for demand for NextDC’s existing centres. It is also constructing new centres to capture increasing demand and looking at expansions into other markets.

Goldman Sachs is positive on the company and has a buy rating and $14.20 price target on its shares. This compares to the latest NextDC share price of $10.09, implying over 40% upside for investors.

TechnologyOne Ltd (ASX: TNE)

A final ASX growth share to look at is enterprise software provider TechnologyOne. It has been around for decades but has only recently decided to follow the lead of Microsoft et al in transitioning to a software-as-a-service (SaaS) focused business. Pleasingly, this transition is going very well and management believes it is on course to almost double its annual recurring revenue (ARR) to $500 million by FY 2026.

The team at Goldman Sachs is also very positive on Technology One. The broker currently has a buy rating and $13.30 price target on its shares. This suggests potential upside of 30% for investors from the current TechnologyOne share price of $10.25.

The post Experts name 3 ASX growth shares to buy with enormous upside potential 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 positions in and has recommended Altium. The Motley Fool Australia has recommended 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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