Looking for a growth share or two to buy? If you are, you may want to look at the two listed below.

Here’s why these ASX growth shares are rated highly right now:

Corporate Travel Management Ltd (ASX: CTD)

Although a number of ASX travel shares have recently hit 52-week highs, the same cannot be said for Corporate Travel Management, which is languishing 37% lower than its highs.

The team at Morgans appears to see this as a buying opportunity for investors, especially given how they believe the company will come out of the pandemic in a stronger position. It explained:

CTD is our key pick of the travel sector. For investors that can take a medium-term view, we see substantial upside in its share price as the company recovers from the COVID-affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost-out opportunities and continued to develop its market-leading technology offering which means it will require less staff in the future. CTD is well managed and has a strong balance sheet (no debt).

Morgans has an add rating and $25.65 price target on the company’s shares. This implies 53% upside from the latest Corporate Travel Management share price of $16.66.

Xero Limited (ASX: XRO)

This cloud accounting platform provider could be another ASX growth to buy.

That’s the view of analysts at Goldman Sachs, which believe Xero has a “compelling global growth story.”

Particularly given how it currently provides its core accounting solution to a total of 3.3 million global subscribers, which is well short of its total addressable market (TAM) of ~45 million+ subscribers. Goldman commented:

We see Xero as very well placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$76bn TAM. Following the recent underperformance (absolute/relative), we see an attractive entry point into a compelling global growth story and our preferred large-cap technology name in ANZ, and are Buy rated.

Goldman Sachs has a buy rating on Xero’s shares with a $115.00 price target. Based on the latest Xero share price of $71.07, this implies potential upside of 62% for investors.

The post Analysts say these ASX growth shares can generate huge returns for investors appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why did the Xero share price take such a beating on Wednesday?
• Why European Lithium, PEXA, PolyNovo, and Xero shares are dropping today
• ‘Attractively priced’: Why fund is excited by these 2 ASX 200 shares
• Could ASX 200 travel shares be set for a major boost in 2023?

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Corporate Travel Management. 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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