Morgan Stanley rates these 3 ASX growth shares as buys

These growth shares could be in the buy zone…

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Are you interested in adding some ASX growth shares to your portfolio? If you are, you may want to look at the ones listed below that have recently been named as buys by the team at Morgan Stanley.

Here's what you need to know about them:

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Life360 Inc (ASX: 360)

The first ASX growth share that Morgan Stanley is positive on is Life360. It is the growing technology company responsible for the eponymous Life360 mobile app. This market leading app is for families and offers useful features such as communications, driver safety, and location sharing.

As of its last update, Life360 had grown its user base to a massive 32 million. This is generating significant recurring revenue and, most importantly, opens the door to material cross selling and upselling opportunities. Particularly given its recent acquisitions of wearables company Jiobit and items tracking company Tile.

Morgan Stanley is bullish the company's future. It currently has an overweight rating and $16.50 price target on its shares.

Symbio Holdings Limited (ASX: SYM)

Another ASX growth share that the broker is positive on is Symbio (previously known as MNF Group). Symbio develops and operates a global communications network and software suite that allows some of the world's leading tech innovators to deliver new-generation communications solutions.

This includes giants such as Google, Twilio, and Zoom. Symbio appears well-placed for growth over the long term thanks to favourable tailwinds and its expansion across Asia. It is also sitting on a sizeable cash balance following an asset divestment. This gives management opportunities to bolster its growth through M&A activities.

The broker currently has an overweight rating and $7.30 price target on Symbio's shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share the broker is bullish on is Temple & Webster. It is an online furniture and homewares retailer which has really caught the eye in recent years.

Thanks to its strong market position and the ongoing shift to online shopping, Temple & Webster has been growing its sales and operating earnings at a rapid rate. For example, in FY 2021 the company revealed an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million.

The good news is that Temple & Webster still has a long runway for growth over the next decade as more and more category sales shift online.

Morgan Stanley has an overweight rating and $16.00 price target on Temple & Webster's shares.

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 shares of and has recommended Life360, Inc., MNF Group Limited, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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