Broker says these ASX growth shares with very bright futures are top buys

There are a lot of options for growth investors to choose from on the Australian share market.

But two that could be standouts according to Morgans are named below.

The broker not only thinks they are buys but predicts strong returns from their shares over the next 12 months. They are as follows:

Corporate Travel Management Ltd (ASX: CTD)

The first ASX share that could be a quality option for growth investors is Corporate Travel Management. It is a global leader in business travel management services.

While its performance during the first-half underwhelmed analysts at Morgans, the broker believes it is worth sticking with the company. It explains:

The quantum of the earnings downgrade is clearly disappointing. Given the aggressive pivot in earnings guidance from the AGM last year, the market may take time to rebuild its confidence in the outlook. However, if CTD delivers even close to its five-year strategy, the share price will be materially higher in time. We maintain an Add rating with a new price target.

Morgans has an add rating and $20.65 price target on its shares.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX growth share that has been tipped as a buy by analysts at Morgans is Lovisa. It is a fast fashion jewellery retailer with a rapidly growing international store network.

The broker was impressed with the company’s performance during the first half, noting that its result came in ahead of expectations. But while that was strong, Morgans thinks investors should be focusing less on the near term and more on its long-term growth potential. It said:

The 1H24 result surpassed expectations, mainly due to strong gross margins, which were supported by favourable changes to the price architecture. We have increased our EBIT estimate for the current year by 4%, but, for us, it’s not about the near-term. The investor should focus on what this business could develop into in the years ahead. We reiterate our Add rating and increase our target price.

Morgans has an add rating and $35.00 price target on its shares.

The post Broker says these ASX growth shares with very bright futures are top buys appeared first on The Motley Fool Australia.

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