Looking for growth shares to buy next week? Well, listed below are two growth shares that have recently been named as buys and tipped to have major upside potential.

Here’s what you need to know about them:

Dicker Data Ltd (ASX: DDR)

Dicker Data could be a growth share to buy. It is a leading technology hardware, software, and cloud distributor.

The company has been a quiet achiever over the last decade, delivering consistently solid earnings and dividend growth without much fanfare. Pleasingly, this positive form has continued this year with Dicker Data delivering a 50.5% increase in revenue to $673.6 million and a 22.7% lift in profit before tax to $23.8 million during the first quarter.

One leading broker that appears to believe this strong form can continue is Morgan Stanley. Last month, the broker retained its overweight rating and $16.00 price target on its shares. Based on the current Dicker Data share price, this implies potential upside of over 40%.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine could be another ASX growth share to buy. It is of course the wine giant behind popular brands such as 19 Crimes, Penfolds, and Wolf Blass.

After taking a big hit from being kicked out of China, Treasury Wine has returned to form in FY 2022. This has been driven largely by the success of its North American business.

The good news is that analysts at Morgans expect this positive form to continue. In fact, the broker said that it believes the “foundations are now in place for TWE to deliver strong double-digit growth from 2H22 over the next few years.”

Morgans has an add rating and $13.93 price target on the company’s shares. Based on the current Treasury Wine share price of $11.30, this implies potential upside of 23% for investors.

The post Here’s why brokers rate these ASX growth shares as buys appeared first on The Motley Fool Australia.

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More reading

• What I love about these 2 ASX growth shares
• Experts name 2 ASX growth shares to buy with major upside potential
• 2 blue chip ASX 200 shares Morgans rates as buys
• Despite recent volatility, brokers are bullish on the Treasury Wine share price
• The Dicker Data share price is trading at YTD lows. Here’s why

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 Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has recommended Treasury Wine Estates 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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The CSL Limited (ASX: CSL) share price has tumbled lower with the market in 2022.

Since the start of the year, the biotherapeutics giant’s shares have lost 8% of their value.

In light of this, investors may be wondering if the CSL share price is now trading at an attractive enough level to start an investment.

Is the CSL share price in the buy zone?

According to a note out of Citi, its analysts believe that CSL’s shares are great value at the current level.

The note reveals that the broker has retained its buy rating but trimmed its price target slightly to $330.00.

This implies potential upside of 22% for investors over the next 12 months.

What did the broker say?

Citi has been looking at the plasma industry again and was pleased with what it saw.

This includes strong underlying demand for plasma products and much-improved plasma collection conditions. In light of the latter, the broker feels that the market will move on from its collections focus, which has been weighing on the CSL share price, and focus more on demand.

Citi’s analysts explained:

Recently, there have been several data points influencing our view on the plasma sector. US CMS data indicates continued price increases in immunoglobulin products. This is consistent with our expectation, as donor fees continue to remain elevated.

Underlying demand for plasma products remains strong but supply is constrained due to low plasma collection volume. With plasma collections now back to pre-pandemic levels, we expect the market to shift its focus to the strong underlying plasma product demand.

The broker expects the above to “lead to strength in the CSL share price.” Which could bode well for investors in the near future.

The post Why this broker is tipping ‘strength in the CSL share price’ appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Why did the CSL share price beat the ASX 200 on Wednesday?
• Broker names 2 of the best ASX 200 shares to buy now
• CSL share price ‘will be significantly bigger from this point’: fundie
• Top brokers name 3 ASX shares to buy next week

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 CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The BHP Group Ltd (ASX: BHP) share price has come under pressure this week following a pullback in the iron ore price.

This means the mining giant’s shares are now trading at their lowest levels in 2022.

Is the BHP share price a buying opportunity?

The team at Goldman Sachs are likely to see the pullback in the BHP share price as a buying opportunity.

Last week, the broker reiterated its buy rating with a $49.40 price target. This implies potential upside of 23% for investors over the next 12 months.

And sweetening the deal even further, the broker is forecasting a fully franked dividend yield of over 12% in FY 2022.

This stretches the total potential return on offer with the Big Australian’s shares to approximately 35% for investors.

What is Goldman saying?

Goldman Sachs has named three key reasons for its positive view on the BHP share price. This includes its current valuation relative to peers, its production growth pipeline, and its strong free cash flow generation.

Goldman explained:

1. Relative valuation: BHP to continue trading at a premium to global mining peers (~0.5x premium to global mining peers over 10-yrs) which we believe can be maintained

2. ~US$20bn copper pipeline to drive production growth and value: BHP’s major opportunity (and challenge) is offsetting copper reserve depletion and grade decline through investing in copper reserves/resources (largest globally).

3. Attractive FCF and capital returns outlook: BHP is trading on an attractive FCF/DPS yield of c. 11%/8% over the next 12-m. BHP’s minerals capex increasing to US$8-9bn by mid-decade (but below peer RIO at US$9-10bn).

All in all, this could make BHP shares a great option if you’re looking for exposure to the mining sector.

The post Broker sees 23% upside and a huge yield for BHP shares appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 mining shares having such a dire week?
• Own BHP shares? ‘Almost unbelievable’ breakthrough could be key to miner’s climate strategy
• Here’s the BHP dividend forecast through to 2024
• Here’s why the BHP share price is in the red today
• ASX 200 midday update: Pilbara Minerals’ lithium price update, BHP tumbles

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 Goldman Sachs. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Shares in Domino’s Pizza Enterprises Ltd (ASX: DMP) have been killed in 2022. The Domino’s share price has fallen 60% from a 52-week high of $167.15 in September 2021 to $66.15 at market close on Friday.

Domino’s was among the pandemic winners on the ASX. Immediately before the crash, the Domino’s share price was trading at about $62 — a few dollars lower than today’s share price.

Then people were put into lockdown. Takeaway and delivery meals became extremely popular. Brands like Domino’s actively leveraged the pandemic to grow their business through measures such as a ‘zero contact delivery service’ to entice more customers.

Now that lockdowns are over, has the Domino’s share price simply come back down to Earth?

Domino’s grew alongside its share price during COVID-19

In a recent presentation, Domino’s outlined its growth during the pandemic and plans for future growth.

Domino’s has franchises all over the world. According to its presentation, there are currently 3,327 stores across 10 markets. Six are in Europe and four are in the Asia-Pacific region.

Over the two years of the pandemic, network sales increased by 29.5%. EBIT increased by 25.2% and the network’s store count increased by 24.3%. They’re the stats for H122 compared to H120.

What Domino’s is going to do next…

Over the long term, Domino’s is aiming for 3,600 stores in Asia-Pacific (83.8% growth) and 3,050 stores in Europe (123% growth).

The presentation described the “engine of our growth” as digital sales, with a compound annual growth rate (CAGR) of 26.75% since FY14. Online sales accounted for $557 million in sales in FY14 compared to $2.93 billion in FY21.

Customers are increasingly wanting their food delivered. In Domino’s markets, online food delivery orders in the quick service restaurant (QSR) sector are forecast to rise 46.9% by 2026, according to Statista.

The challenge of this rising trend is finding enough staff to meet the increasing demand for delivery. So, growing the labour pool is a priority.

Domino’s intends to grow its customer base by spending more on advertising, particularly television, and growing its store network.

The company says it’s also possible to reduce delivery costs by a third in every market. One way to do this is to reduce the reliance on cars to deliver food and instead use bicycles.

Domino’s acknowledged current global economic headwinds in its presentation.

“We face historic headwinds, including inflation, conflict in Europe, and currency movements, but we are focused on the long-term”.

The post Own Domino’s shares? Here’s how the company plans to grow through tough times appeared first on The Motley Fool Australia.

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More reading

• 2 beaten down ASX shares named as buys by experts
• 3 ASX shares to buy for scary times: experts
• 2 ASX growth shares to buy for when the market rebounds
• 2 top ASX growth shares with major upside potential
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Bronwyn Allen has positions in Dominos Pizza Enterprises 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 Scott Phillips.

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