Goldman is a fan of these growth shares…
The post 2 fantastic ASX growth shares Goldman Sachs rates as buys appeared first on The Motley Fool Australia. –
Fortunately for growth investors, there are plenty of shares on the Australian share market with strong long term growth potential.
Two such shares are named below. Here’s why analysts at Goldman Sachs think these ASX growth shares could be buys:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
The first ASX growth share to look at is this leading pizza chain operator.
Thanks to the popularity of its offering and the expansion of its footprint both at home and overseas, Domino’s has been growing at a consistently solid rate for well over a decade.
The good news is that Goldman Sachs expects this positive form to continue long into the future. Especially given its aim of more than doubling its footprint to 6,650 stores in existing markets by 2033.
It commented: “Overall, we believe that the longer term growth outlook driven by strong store growth remains unchanged. We make no changes to our store forecasts, but backend weight the rollout in FY22 in line with guidance. Overall, our revised forecasts still imply a 3 year CAGR EBITDA outlook of +14.6% driven by overall strength in Europe (+19.7%) and Japan (+15.3%).”
Goldman currently has a buy rating and $147.00 price target on Domino’s shares.
Xero Limited (ASX: XRO)
Another ASX growth share to look at is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses.
Xero has been growing strongly over the last few years and looks well-positioned to continue the trend in the years to come. This is thanks to its international expansion, acquisitions, the transition to the cloud, and its burgeoning app ecosystem. The latter has significant monetisation potential.
The broker recently commented: “We expect XRO revenue to double across FY21-24E, driven by: (1) ARPU growth from the recently announced price rises (benefiting FY22/23E) and the introduction of this app store fee (benefiting FY23/24E); (2) Subscriber growth, given accelerating subscriber growth across all geographies in 2H21, and strong recent traction from its Enterprise strategy; and (3) M&A.”
Goldman Sachs has a buy rating and $158.00 price target on its shares.
The post 2 fantastic ASX growth shares Goldman Sachs rates as buys appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended 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.