These ASX growth shares are being tipped to smash the market

MotleyFool
2024-11-13

Do you have room in your portfolio for some more ASX growth shares? If you've answered yes to this, then read on!

That's because the three ASX growth shares listed below are being tipped as top buys by brokers and could generate market-beating returns over the next 12 months. Here's what they say they are worth:

NextDC Ltd (ASX: NXT)

The first ASX growth share that could be a buy is NextDC. It is one of Asia's most innovative data centre-as-a-service providers.

Morgans believes that the company is well-placed for growth in the coming years. This is thanks to the cloud computing and artificial intelligence booms.

In fact, its outlook is so positive that the broker estimates that NextDC's operating earnings could double based on existing agreements.

The broker currently has an add rating and $20.50 price target on its shares. This implies potential upside of 20% for investors between now and this time next year.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that could be a buy according to analysts is Temple & Webster. It is Australia's leading pureplay online furniture and homewares retailer. At the last count, it had annual sales of $498 million from its 1.1 million active customers.

As the structural shift to online shopping in the furniture and homewares market is still in its early days, Temple & Webster appears well-positioned to continue its strong growth long into the future.

Citi appears to believe this is the case. As a result, the broker recently named it as its top pick in the online retail space right now.

The broker recently put a buy rating and $13.50 price target on its shares. This suggests that upside of almost 17% is possible for investors from current levels.

Tyro Payments Ltd (ASX: TYR)

Finally, analysts at Morgans are also positive on Tyro and see it as an ASX growth share to buy.

It is a payments company powering more than 71,000 merchants across Australia with instore, online, and on-the-go payment solutions.

The broker has been impressed with the company's performance of late. It notes that its recent full year result "demonstrated improved profitability through the benefits of TYR's pricing transformation program, and efficiency improvements." This led to Morgans upgrading its earnings estimates meaningfully for Tyro over the next few years.

Morgans currently has an add rating and $1.63 price target on its shares. This implies potential upside of over 80% for investors from current levels.

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