Nuix Limited (ASX: NXL) and these mid cap ASX shares could be great long term investments for investors. Here’s why they are rated as buys…
The post Brokers name 2 mid cap ASX shares as buys appeared first on The Motley Fool Australia. –
Are you looking for some options in the mid cap space? If you are, you might want to check out the ones listed below.
Here’s why analysts think these ASX mid cap shares could be in the buy zone right now:
Audinate Group Limited (ASX: AD8)
The first mid cap ASX share to look at is this digital audio-visual networking technologies provider. Audinate is the company behind the industry-leading Dante audio over IP networking solution. This solution is used widely across a number of industries and is currently dominating the competition.
Dante replaces traditional analogue audio cables by transmitting perfectly synchronised audio signals across large distances, to multiple locations at once, using nothing more than an Ethernet cable.
Although demand softened during the height of the pandemic, it has rebounded strongly in recent months. For example, Audinate’s fourth quarter revenue jumped 74% over the prior corresponding period. This led to the company reporting a 23% increase in full year revenue to US$25 million in FY 2021.
UBS is positive on Audinate. It currently has a buy rating and $11.30 price target on its shares.
Hipages Group Holdings Ltd (ASX: HPG)
Another mid cap ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider.
Its platform connects tradies with residential and commercial consumers. Furthermore, the Hipages platform not only helps tradies grow their businesses by providing job leads, it also allows them to communicate with customers and run general admin duties.
Hipages has been growing very quickly in FY 2021 despite lockdowns. It ended the fourth quarter with Monthly Recurring Revenue (MRR) of $5.2 million, which was a 27% increase on the prior corresponding period. It also revealed a 12% increase in total subscription tradies to 31,200, and a 27% jump in average revenue per tradie to $1,638.
Goldman Sachs is positive on the company and sees it as a great long term option. It notes that the company currently captures around 5% of total industry advertising spend. However, it sees potential for this to increase to 40% to 60% in the future as the company builds out its ecosystem.
Goldman Sachs has a buy rating and $4.10 price target on its shares.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AUDINATEGL FPO and Hipages Group Holdings Ltd. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.