Looking for growth shares to buy? Listed below are two growth shares that have recently been named as buys.
Here's what you need to know about these ASX growth shares:
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IDP Education Ltd (ASX: IEL)
The first ASX growth share that analysts are tipping as a buy is language testing and student placement company IDP Education.
In respect to language testing, IDP is the co-owner of the IELTS test, which is the English test that is trusted by more governments, universities and organisations than any other. Demand for this test softened during the worst of the pandemic, but has since rebounded very strongly. This led to the company reporting bumper sales and profit growth for FY 2022 last month.
Goldman Sachs is confident that the company's growth can continue in the coming years thanks to strong underlying system demand. It commented:
IEL is trading c.40% below its 5-yr average P/E premium to the ASX200 Industrials with a forecast 37% FY22-25E EPS CAGR, we remain Buy-rated. We have upgraded EPS in FY23/FY24 by 1.7%/0.8% on the back of the stronger FY22 result, continued strong revenue growth and margin expansion. The balance sheet is in a resilient position with c.A$40mn of net cash to facilitate any bolt-on acquisitions or ramp up in organic investment in new offices and technology.
Goldman has a buy rating and $35.50 price target on the company's shares.
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX growth share that has been tipped as a buy is Treasury Wine.
It is the wine giant behind popular brands including 19 Crimes, Wolf Blass, and the jewel in the crown, Penfolds.
It has been a turbulent few years for Treasury Wine. After being effectively kicked out of the lucrative China market, the company has been busy reallocating its sales into other markets. The good news is that this has been successful and the company is back on track again.
The even better news is that Morgans is expecting this strong form to continue in the coming years. It commented:
TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.
Morgans has an add rating and $13.93 price target on the company's shares.
