If you’re looking for ASX growth shares with strong potential this August, Aristocrat Leisure Ltd and Treasury Wine Estates Ltd are generating significant interest. Analysts are optimistic about these companies, forecasting potential for substantial gains if their targets are met. Here’s why these stocks are attracting attention.
Aristocrat Leisure Ltd (ASX: ALL)
Aristocrat Leisure Ltd, a global leader in gaming technology, saw its shares rise nearly 3% to $50.99 on Tuesday. The company is renowned for its extensive portfolio, which includes poker machines and online gaming solutions.
Recent reports highlight Aristocrat Leisure’s strong growth outlook. Analysts have set a target price of $59.00 for the stock, suggesting a potential upside of 16% from its recent closing price. This positive outlook is supported by the company’s strategic acquisition of NeoGames for $1.5 billion, which has led to the creation of the new 'Aristocrat Interactive' business unit. This move is expected to drive future growth and enhance Aristocrat’s position in the gaming sector.
Additionally, the company's mobile game, RAID, has shown impressive growth, surpassing broader market trends. The consensus among analysts is favorable, with the stock rated positively for its future potential.
Treasury Wine Estates Ltd (ASX: TWE)
Treasury Wine Estates Ltd, known for its premium wine brands like Penfolds, ended Tuesday’s trading session at $11.72, marking a 1% increase. The stock has gained around 8% so far this year.
Forecasts for Treasury Wine Estates are equally promising. Analysts have assigned a target price of $14.70 for the shares, indicating a potential 26% upside. This optimism is driven by expectations of accelerating double-digit earnings-per-share (EPS) growth over the next few years. Key factors contributing to this outlook include the removal of Chinese tariffs and the expansion of the Penfolds brand.
The acquisition of DAOU Vineyards is also seen as a strategic move to bolster future growth. Treasury Wine Estates' strong position as the leading luxury wine company in the U.S. further supports its positive growth trajectory.
Aristocrat Leisure Ltd (ASX: ALL) and Treasury Wine Estates Ltd (ASX: TWE) are attracting significant attention as ASX growth shares with considerable potential. Both companies are positioned well for future growth, driven by strategic initiatives and market opportunities. As always, it's important for investors to conduct their own research and consider the associated risks before making investment decisions.