As an income investor, I tend to focus on dividend stocks. But growth stocks still play an important role in my portfolio. Typically, growth-focused companies expand sales and earnings faster than the market average, with returns coming mainly from share-price gains rather than dividends.

In a diversified portfolio, they keep the gains flowing, while income stocks provide steadier cash flow.

While hunting for growth opportunities this week, I noticed two FTSE 100 growth stocks tipped to deliver 30%+ gains in the coming 12 months: AstraZeneca (LSE:AZN) and Babcock International (LSE:BAB).

Both have strong growth drivers and positive analyst backing, but also clear risks worth weighing up before diving in. Let’s take a look at their individual pros and cons.

AstraZeneca

AstraZeneca’s latest updates centre on H1 and Q2 2026 results, with the market focused on pipeline momentum. A key growth driver is the recent positive Phase 3 CROSSING trial for Tezspire in eosinophilic esophagitis, announced on 27 August.

We’re told the drug showed statistically significant and clinically meaningful improvements across both co-primary endpoints at week 24, sustained through week 52, with a safety profile consistent with approved uses.

A bit science-y for me, but it sounds positive.

Clearly, analysts think so too. Consensus 12-month price targets sit at around 16,012p, implying roughly a 32.2% gain from recent levels. Of the brokers I reviewed, 27 give it a Buy rating, with four Holds and only one Sell. 

Still, it isn’t risk-free. Trial setbacks are always a key concern in pharmaceuticals, compounded by pricing pressure in the US, and the usual biotech volatility around regulatory decisions.

Babcock International

I’m not a Babcock shareholder but it’s a stock I’ve had a close eye on for some time — and the latest results increase that interest. For FY2026, revenue came in at £5.18bn, up from $4.83bn the year prior, while underlying operating profit climbed 19% to £433m.

However, when accounting for a £140m once-off charge, reported earnings per share (EPS) fell 21% to 39.6p (from 50.1p).

The key factor that’s been driving growth is boosted defence spending, with UK contracts in nuclear submarines and secure communications providing multi-year visibility. Management also announced a new £200m share buyback and kept FY2027 guidance unchanged.

Looking at analysts, there’s less coverage than AstraZeneca but still majority-positive. Nine give it a Buy rating, with one Hold and no Sells that I could find. The 12-month price target is around 1,409p, implying growth of 31.23% in the coming year.

But that growth could easily be derailed by any cost overruns or a cut in defence spending. Government budgets are inherently cyclical, so those strong profits could taper off in the next results. If so, investor sentiment could change quickly.

The bottom line

Both these FTSE 100 names offer above-average growth profiles, backed by recent results, clear catalysts, and strong analyst support. AstraZeneca enjoys a solid pipeline and global pharma scale, while Babcock benefits from defence spending and contract visibility. 

But growth always comes with risk, from clinical trial outcomes to contract execution. Whether or not they actually achieve 30% gains remains to be seen, but there are solid numbers backing those expectations — not just hype.

For an investor looking for growth opportunities, I’d say these two should be high on any watchlist right now.

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Mark Hartley owns shares in AstraZeneca.

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