Expect big things from these ASX growth shares: analysts

There are plenty of quality ASX growth shares to consider as investments.

Two that could be standout picks right now are listed below. Here’s why brokers are feeling very bullish about these shares:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Analysts at Morgans believe that this pizza chain operator is a growth share to buy. Its analysts have an add rating and $90.00 price target on its shares.

The broker believes that recent share price weakness caused by temporary headwinds has created a buying opportunity for investors. Particularly given its strong brand and global expansion plans. Morgans explained:

DMP is, in our opinion, a high quality operator with significant brand strength, first class executive management and a global platform for long-term network expansion. Cost inflation and adverse FX movements present significant challenges to earnings at present.

We believe these pressures are transitory in nature. In our opinion, now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time. The recent equity raise will fund DMP’s acquisition of the remaining stake in its German joint venture and keep gearing low enough to allow for future M&A optionality.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that has been named as a buy is Temple & Webster.

Goldman Sachs is very bullish on this online furniture and homewares retailer and has put a buy rating and $7.60 price target on its shares.

Its analysts are expecting Temple & Webster to grow materially over the next decade thanks to its leadership position in a retail category that is in the early stages of shifting online.  It explained:

Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) in our view TPW 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 vs. other retail categories; and (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.

The post Expect big things from these ASX growth shares: analysts appeared first on The Motley Fool Australia.

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More reading

• 2 top ASX shares that could turn $10,000 into $50,000 by 2030
• Top ASX growth shares to buy in February 2023
• How I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year
• 10 ASX stocks to buy before they report this earnings season: Goldman
• Top ASX value shares to buy in February 2023

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Temple & Webster Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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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