Why these ASX 200 growth shares could be top buys now

If you’re a growth investor and looking for new portfolio additions this week, then it could be worth checking out the three shares named below.

That’s because they have recently been tipped as buys by analysts.

Here’s why they are feeling bullish about these ASX 200 growth shares:

Life360 Inc (ASX: 360)

Goldman Sachs is a fan of this location technology company and sees it as a top option for investors even after rising strongly this year. It said:

360’s re-rate is only beginning, in our view, as it delivers solid subscription and EBITDA growth from the core business while opening up significant upside optionality via advertising monetisation.

FY24E EBITDA guidance appears conservative relative to the operating leverage demonstrated in FY23A and provides visibility to >50% growth in both FY24/25E.

Goldman currently has a buy rating and $14.20 price target on the ASX 200 growth share.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX 200 growth share that analysts are positive on is fast fashion jewellery retailer Lovisa.

Morgans was very pleased with the company’s performance during the first half, noting that its result came in ahead of expectations. The good news is that it believes there’s more to come thanks to its global expansion. 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.

TechnologyOne Ltd (ASX: TNE)

Finally, this enterprise software provider could also be a top ASX 200 growth share to buy according to Goldman Sachs.

The broker is expecting TechnologyOne to achieve its annual recurring revenue (ARR) target and deliver mid to high teen earnings per share growth through to at least FY 2026. It explains:

In our view, the company is well placed to meet its A$500mn FY26 ARR target through a combination of SaaS flip uplift, net expansion and new customer growth. We see margin expansion resuming from FY24E onwards, which in combination with robust revenue growth should drive a mid-high teens EPS CAGR to FY26E, providing strong earnings visibility. TNE’s share price has historically been driven by its strong rate of compound earnings growth underpinned by its leading market position, high R&D investment and defensive public sector end markets.

Goldman has a buy rating and $18.05 price target on its shares.

The post Why these ASX 200 growth shares could be top buys now appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Bannerman Energy, Cettire, TechnologyOne, and Zip shares are charging higher
• 2 ASX growth stocks I’d buy for rapidly rising profit
• Guess which ASX 200 tech stock has just been upgraded
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has positions in Life360 and Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, Lovisa, and Technology One. The Motley Fool Australia has recommended Lovisa and Technology One. 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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