If you have room for some new portfolio additions this week, then it could be worth considering the two ASX growth shares listed below.
Here's what you need to know about these buy-rated shares:
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Lovisa Holdings Limited (ASX: LOV)
The first ASX growth share to look at is fast-fashion jewellery retailer Lovisa.
Analysts at Morgans have tipped the company as a buy due to its strong long term growth potential. This is being underpinned by its global expansion plans, which will be overseen by its highly experienced CEO, Victor Herrero.
Commenting on its expansion opportunity, the broker said:
Lovisa's global footprint now spans 22 countries. In our opinion, investors can expect this number to increase steadily while, at the same time, Lovisa builds out its presence in its existing markets. We do not think there is any lack of opportunity. In the US, for example, Lovisa now has 81 stores, representing 0.25 stores for every million people), compared to Australia with 158 stores, 6.15 stores for every million people.
Morgans has an add rating and $21.50 price target on its shares.
Readytech Holdings Ltd (ASX: RDY)
Another ASX growth share to look at this month is Readytech. It owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government.
Goldman Sachs is very positive on the company. This is due to the company operating in market niches that are under-served by both large and small enterprise software competitors. It highlights that this has underpinned high (and growing) levels of recurring revenue and ultra low churn levels. It commented:
RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company's earnings profile in an economic downturn. In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.
Goldman has a buy rating and $4.60 price target.
