These ASX growth shares have massive global opportunities: Goldman Sachs

If you’re wanting to pick up some ASX growth shares, then you may want to consider the two listed below.

Both of these growth shares have been tipped as buys by analysts at Goldman Sachs partly due to their massive global market opportunities.

Here’s what you need to know about them:

Life360 Inc (ASX: 360)

Life360 could be a quality ASX growth share to buy according to Goldman.

This rapidly growing location technology company is responsible for the Life360 mobile app. This freemium app is hugely popular and currently boasts almost 50 million global active users.

The company also added to its arsenal with recent acquisitions of wearables company Jiobit and items tracking company Tile, which are opening the door to cross and upselling opportunities.

Overall, Goldman estimates that “Life360 is exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US.”

It also highlights that it believes “Life360 is approaching an inflection point as it proves the pricing power of its subscription business model and moves out of the non-profitable tech basket.” This could be supportive of a re-rating in the near future.

Goldman has a buy rating and $7.90 price target on Life360’s shares.

Xero Limited (ASX: XRO)

Another ASX growth share that Goldman Sachs believes is in the buy zone right now is Xero.

It is a fast-growing cloud-based accounting solution provider to ~3.3 million small and medium sized businesses globally.

Although this is a large number, it is still on a fraction of its overall market opportunity. This gives Xero and its highly rated and sticky platform a major runway for growth over the next decade and beyond.

Goldman Sachs believes Xero is “very well placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds.”

It estimates that “>100mn SMBs worldwide represent[s] a >NZ$76bn TAM”, which it feels makes Xero “a compelling global growth story.”

Goldman Sachs has a buy rating and $115.00 price target on Xero’s shares.

The post These ASX growth shares have massive global opportunities: Goldman Sachs appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360 and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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