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If you have room for new additions next week, then the two ASX growth shares listed below are worth considering.
Here’s what you need to know about these buy-rated stocks:
Lovisa Holdings Limited (ASX: LOV)
The first ASX growth share that pundits are tipping to buy is Lovisa.
It is a fast fashion jewelry retailer with a growing network of stores worldwide. But Lovisa’s highly experienced management team is not resting on its laurels, it sees an opportunity for significant expansion.
It is for this reason that Morgans is very bullish on the company. Following strong results for the 2022 financial year, he commented:
Even more remarkable than the result itself was the phenomenal scale of LOV’s ambitions. In its own words, LOV is “building a global brand”, which involves developing a global presence that we believe will significantly exceed the 651 stores in the current portfolio.
Growth momentum is expected to pick up in FY23 and the addition of new markets, possibly including Italy and Mexico, looks more than likely. In our opinion, it will not stop there. The expansion in Hong Kong seems to us a precursor to a move into mainland China at the right time. And if LOV can establish itself in Italy, the European capital of fashion, why not Japan, its Asian counterpart, further down the road?
Morgan currently has an add rating and a $24.00 target price on the stock.
Another ASX growth stock that experts are rating as a buy is Megaport, the world’s leading provider of elastic interconnection services.
The increasingly popular Megaport service provides users with an easy way to create and manage network connections. Through the Megaport network, enterprises can deploy a private point-to-point connection between any location on Megaport’s global network infrastructure.
And as the structural shift to the cloud continues, the Goldman Sachs team believes the company could benefit from increased demand and higher spending on enterprise networks. He recently commented:
MP1 benefits from its first-mover advantage and two structural headwinds that have accelerated through COVID-19, including: (1) public cloud adoption and multi-cloud adoption; and (2) The rise of Network as a Service (NaaS). The scope for further growth is huge (GSe is spending A$129 billion on fixed enterprise networks in MP1 regions).
Goldman Sachs has a buy rating and a $10.30 target price on the stock.