These ASX 200 growth shares are conviction buys: Goldman Sachs

If you are on the hunt for some ASX 200 growth shares, then you might want to check out the two listed below.

These growth shares have recently been tipped as strong buys by analysts at Goldman Sachs. Here’s what the broker is saying about them:

NextDC Ltd (ASX: NXT)

Goldman has just reiterated its conviction buy rating and $14.30 price target on this data centre operator’s shares.

The broker was pleased with NextDC’s annual general meeting update and notes that it has reiterated its guidance for FY 2023.

NXT noted continued strong growth in enterprise, network and partner pipelines driving healthy margin, with revenue growth assisted through price escalation & power pass-through. Although we had seen limited risk to NXT guidance in FY23, we still view this as a positive. […] We forecast (1) Revenues of $347mn (vs. $340-355mn guidance, FactSet consensus $349mn); (2) EBITDA of $196mn (vs. Guidance $190-198mn, consensus $194mn).

Goldman expects favourable tailwinds to underpin further solid growth in the years that follow. It is forecasting EBITDA of $228.9 million in FY 2024 and $274 million in FY 2025.

Webjet Limited (ASX: WEB)

In response to Webjet’s recent first half results, Goldman has reiterated its conviction buy rating with an improved price target of $6.90.

The broker was impressed with the company’s performance in the first half and believes it cements its “view that the business is structurally improved vs. pre-pandemic times.”

Goldman is now forecasting its profits to grow by a six-year compound annual growth rate (CAGR) of 15.3%. It added:

Our near term earnings changes remain modest given that we already price in a strong recovery for WEB in FY24/25. What these results have given us greater confidence is in the group’s longer term outlook for both the Bedbanks and OTA businesses. WEB also continues to report strong cash generation.

The post These ASX 200 growth shares are conviction buys: Goldman Sachs appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in 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 Webjet Ltd. 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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