If youâre like me and have a penchant for ASX growth shares, then it could be worth checking out the two listed below.
Analysts at Goldman Sachs are very bullish on these shares and are tipping some strong gains over the next 12 months.
Hereâs what the broker is saying about them:
Temple & Webster Group Ltd (ASX: TPW)
Goldman Sachs is a big fan of Australiaâs leading pure-play online retailer of furniture and homewares.
Its analysts believe it could be an ASX growth share to buy thanks to its major long term market opportunity.
The broker highlights that Temple & Webster has a leadership position in a retail category that is still only in the early stages of shifting online. In addition, it believes the company is well-placed due to the categoryâs high barriers to entry and its specialised approach to e-commerce.
All in all, the broker is forecasting “a 21% 10-yr EBITDA CAGR driven by consolidation of market share and growing online penetration.”
Goldman has a buy rating and $6.50 price target on the companyâs shares.
Xero Limited (ASX: XRO)
Another ASX growth share that Goldman is raving about is Xero. It is a New Zealand based cloud accounting platform provider taking on the world (of accounting).
At the last count, Xero had a total of 3.3 million subscribers globally. And while this is undoubtedly a large number and underpinning huge revenues, it is still only a small slice of its market opportunity.
Goldman Sachs notes that Xero has a âcompelling global growth storyâ thanks to it total addressable market (TAM) of ~45 million+ subscribers.
It is also worth noting that Xero recently revealed major cost cutting plans that will supercharge its earnings growth in the coming years.
Goldman Sachs has a buy rating on Xeroâs shares with a $116.00 price target.
The post Why Goldman Sachs is raving about these ASX growth shares appeared first on The Motley Fool Australia.
FREE Beginners Investing Guide
Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…
For over a decade, we’ve been helping everyday Aussies get started on their journey.
And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.
Yes, Claim my FREE copy!
*Returns as of April 3 2023
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Morgans names the best ASX 200 growth shares to buy in April
- Top ASX growth shares to buy in April 2023
- ASX 200 rebounds after RBA hits pause on its rate hikes
- Morgans names 3 more of the best ASX 200 shares to buy in April
- These are the 10 most shorted ASX shares this week
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 Temple & Webster Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/JuT0qFP
Leave a Reply