19 growth shares for 2025

Marks & Spencer Group (LSE:MKS) and five names from the technology sector are among top picks after a City bank published its annual selection of growth-focused stocks for the year ahead.

Peel Hunt’s 19-strong list, which also includes FTSE 250-listed discoverIE Group (LSE:DSCV) and Domino's Pizza Group (LSE:DOM), boasts an average market capitalisation of £1.5 billion and trades on 15.7 times 2025 earnings.

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The 37 growth picks for last year delivered a weighted-average total return of 11%, comfortably ahead of the 9% achieved in the FTSE All-Share. The standout performances were by Pan African Resources (LSE:PAF) and Trustpilot Group (LSE:TRST) after they doubled in value.

The main drag factors were YouGov (LSE:YOU) and CVS Group (LSE:CVSG), which fell by 50%, as well as Vistry Group (LSE:VTY) and Tullow Oil (LSE:TLW).

Marks & Spencer retains its place in this year’s list, having delivered a total return of 39% in 2024. Ahead of Thursday’s festive trading update, the broker said there looked to be “plenty more in the upgrade tank” as it highlighted 15.6% upside to a target price of 450p.

It added: “Management’s obsession with the mantra that the recovery has only just begun is reassuring: this is no false dawn in our view.”

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Peel Hunt said its assumptions “still do not look heroic” and that the support of sector rotation and a return to a “proper dividend” would make 450p look pretty ungenerous.

M&S is the only name from the retail sector, whereas technology has the highest representation at five. They include fintech Alpha Group International (LSE:ALPH), which has gone from a value of £65 million on its AIM debut in 2017 to a global player now worth more than £950 million.

Peel Hunt sees further upside for Alpha shares to 3,300p, noting an “under-the-radar growth story at an attractive valuation”.  It believes the provider of FX risk management solutions is well placed to take share from banks in a market worth $400 billion.

On payment technology business Boku Inc Ordinary Shares (LSE:BOKU), new wins with mega-tech clients and the proliferation of digital content are factors supporting Peel Hunt’s forecast 69% upside to 308p.

That’s the joint best of this year’s growth compilation, alongside the “grossly undervalued” fellow technology stock WAG Payment Solutions Ordinary Share (LSE:WPS).

Peel Hunt said the FTSE 250-listed company, whose Eurowag platform provides fuel cards and other services for the trucking industry, said the current share price was an attractive entry opportunity for a multi-year growth story. It has a 135p target.

The consistent mid-to-high single-digit growth of AIM-listed business telecoms provider Gamma Communications (LSE:GAMA) makes it the fourth of the five technology investments on the list.

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Peel Hunt sees a further upside of 18% to 1,800p, believing that potential M&A and a planned move to the main London market could both be strong catalysts in the year ahead.

The other pick is Bytes Technology Group Ordinary Shares (LSE:BYIT), whose valuation of 18 times forecast earnings is the lowest since its IPO in 2020 and regarded as an attractive opportunity for long-term investors. The target price is 638p.

The next most popular sector is Media through the inclusion of the corporate merchandise firm 4imprint Group (LSE:FOUR), property portal Rightmove (LSE:RMV) and AIM-listed business information and analytics company GlobalData (LSE:DATA).

On Rightmove, Peel Hunt points out that the FTSE 100-listed company has consistently delivered high single-digit growth in its core business despite the housing market volatility.

The broker believes that investment in adjacent areas such as commercial and rental services will accelerate growth into double digits alongside a market-leading margin of 70%.

Trading on 23 times 2025 earnings, it believes Rightmove shares remain attractive compared to international peers on more than 30 times.

Peel Hunt has a price target of 700p, adding that management’s rejection of last year’s 775p a share offer by REA highlighted confidence in delivering growth independently.

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Financial services contributes two names through Rathbones Group (LSE:RAT) and Mortgage Advice Bureau (Holdings) (LSE:MAB1, while AB Dynamics (LSE:ABDP) and discoverIE are the two industrial entries. Atalaya Mining (LSE:ATYM) and last year’s top stock Pan African Resources are included from the mining sector.

On discoverIE, Peel Hunt said the customised industrial electronics firm had the balance sheet to support compound revenues growth above 10% in the next several years.

It forecasts a 42% upside to 1,000p for the FTSE 250-listed stock, which is in this year’s edition of Wild’s Consistent Winter Portfolio.

The inclusion of Domino’s Pizza reflects Peel Hunt’s forecast that the estate will grow over the next nine years from 1,374 to 2,000 stores and earnings from £136 million to £200 million, potentially enabling the current market cap to be returned to shareholders.

It said: “Domino’s dominates the traditional pizza delivery market. Its competitors have been retracting, whereas its highly profitable franchisees are continuing to expand, driving up Domino’s volumes, cash flow and profitability.

The broker sees shares 38% higher at 425p, adding that recent weakness looked to be a potential buying opportunity.

The other stocks on the list are photo booth and laundry services business ME Group International (LSE:MEGP), Empiric Student Property (LSE:ESP) and Ashtead Technology Holdings Ordinary Shares (LSE:AT.).