It has been a difficult period for investors, with many popular growth shares pulling back meaningfully in recent weeks.
While that is disappointing, it could have created a buying opportunity for the three ASX growth shares listed below. Here’s what you need to know about them:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
The first ASX share to consider this month is this pizza chain giant. While rising inflation poses challenges for Domino’s and could put pressure on its margins, this is only expected to be temporary. In light of this, investors may want to focus more on the long term, which remains very positive. This is thanks to its bold expansion plans at home and overseas, acquisitions, and its focus on technology.
Goldman Sachs remains positive on Domino’s. It currently has a buy rating and $136.20 price target on the company’s shares.
Life360 Inc (ASX: 360)
Another growth share to look at is Life360. Through its Life360 app, the company operates in the digital consumer subscription services market. It has a focus on products and services for digitally native families, where all members of the household are connected by smartphones. At the last count, the company had a massive 33.8 million monthly active users are using its app and was generating US$120.1 million of Annualised Monthly Revenue (AMR) from them. In addition, Life360 has made a number of bolt-on acquisitions recently that open up material cross and upselling opportunities in the future.
Bell Potter is bullish on Life360. It currently has a buy rating and $13.51 price target on its shares.
Xero Limited (ASX: XRO)
A final ASX growth to look at is this cloud-based accounting solution provider to small and medium sized businesses. Xero has been growing at a rapid rate in recent years and continued this trend in FY 2022. For example, during the first half, it reported a 23% increase in subscribers to 3 million and a 29% lift in annualised monthly recurring revenue (AMRR) to NZ$1,132 million. Positively, Xero’s subscriber count is still only a fraction of its total addressable market of 45 million subscribers globally.
Citi is bullish on Xero. Last month the broker retained its buy rating and $160.00 price target on the company’s shares amid positive read-throughs from rival Sage’s Q1 update.
The post 3 ASX growth shares to buy after recent market weakness appeared first on The Motley Fool Australia.
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More reading
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Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. and Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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