There are a lot of growth shares for investors to choose from on the ASX.

To narrow things down, I have picked out three ASX growth shares that have recently been tipped as buys with major upside potential.

Here’s what you need to know:

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals shares could be a top option for growth investors. This is because the lithium giant has been tipped to generate big returns from current levels by analysts at Macquarie. This is due to its belief that the miner is well-placed to generate huge free cash flow from its expanding operations in the coming years.

Macquarie currently has an outperform rating and $7.70 price target on Pilbara Minerals’ shares. This implies potential upside of 82% for investors.

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share to buy could be Readytech. It is a leading provider of mission-critical solutions to the education, employment services, workforce management, government and justice sectors. Goldman Sachs is bullish on the company and believes its shares are cheap considering its growth potential. It highlights that “RDY is now trading at ~17x FY24 P/E while delivering ~20% FY23-25E EBITDA CAGR.” The latter is expected to be “supported by its defensive public sector end-markets (~3/4 of earnings) and mission-critical software systems.”

Goldman has a buy rating and $4.40 price target on its shares. This suggests potential upside of 42% from current levels.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share that could be a buy is Temple & Webster. It is Australia’s leading pureplay online furniture and homewares retailer. Goldman Sachs is also very positive on the company and believes it is well-placed for strong growth over the next decade. This is due to its belief that the company “is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry.”

Goldman has a buy rating and $6.10 price target on its shares. This would mean a return of almost 60% over the next 12 months.

The post Buy Pilbara Minerals and these ASX growth shares for 40%+ returns: analysts appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• What’s the outlook for the Pilbara Minerals share price in May?
• 2 ASX 200 lithium shares to buy for $100 monthly passive income each
• 2 ASX growth shares I’d buy today before it’s too late
• Here are the top 10 ASX 200 shares today

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 ReadyTech and Temple & Webster Group. The Motley Fool Australia has recommended ReadyTech and Temple & Webster Group. 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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