If youāre looking for ASX growth shares to buy this month, then it could be worth listening to what analysts at Goldman Sachs are saying.
Here’s what the broker is saying about them:
Macquarie Technology Group LtdĀ (ASX: MAQ)
Macquarie Technology could be an ASX growth share to buy according to the broker.
It is a leading cloud, data centre, cyber security, and telecommunications company that Goldman expects to benefit from strong demand for data centre capacity. Particularly given the emergence of generative AI services. The broker said:
[W]e expect AI to catalyse a third wave of demand for data centre providers in Australia as GenAI workloads shift from LLM training (generally done offshore) to inference and enterprise use cases (in Australia). The clearest beneficiary across our IT Services coverage is MAQ and its portfolio of DC assets in Sydney/Canberra, helping drive medium-term demand from hyperscalers and enterprises.
Goldman has a buy rating and a $77.20 price target on the ASX tech share.
TechnologyOne LtdĀ (ASX: TNE)
Another ASX growth share that Goldman Sachs rates as a buy is enterprise software provider TechnologyOne.
It is very positive on the company due to its defensive earnings and positive growth outlook. In respect to the latter, the broker continues to believe that Technology One’s annual recurring revenue (ARR) will grow in the double digits through to at least FY 2025. It explains:
We highlight the defensiveness of TNEās core end markets of Local Government (35% of 1H23 ARR) and Education (25%), and the public sector more broadly (>75%), with growing IT spending supported by revenue streams including council rates and government funding. We see TNEās +10-15% FY23E PBT growth guidance as conservative, and believe that TNE can grow PBT >15% p.a. across FY23-25E driven by its strong ARR outlook (+18% FY22-25E CAGR) and modest margin expansion (+220bps FY22-25E).
Goldman Sachs has a buy rating and a $18.30 price target on Technology Oneās shares.
