Here are two mid cap shares that could be buys…
The post Goldman Sachs names 2 mid cap ASX shares to buy 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.
Hereâs why analysts at Goldman Sachs think these ASX mid cap shares could be in the buy zone right now:
Hipages Group Holdings Ltd (ASX: HPG)
The first mid cap ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider.
The Hipages platform connects tradies with residential and commercial consumers, and also allows them to communicate and run general admin duties.
Goldman Sachs is positive on the company and sees it as a great long term option for investors. In response to recent share price weakness, it commented:
The fundamentals of this business remain very strong, and we see a number of drivers transforming this marketplace into an essential ecosystem for tradies over the long term.
Goldman Sachs has a buy rating and $2.50 price target on its shares.
Readytech Holdings Ltd (ASX: RDY)
Another mid cap share that Goldman likes is Readytech.
It owns a portfolio of enterprise software businesses across several market verticals. This includes higher education, HR/payroll, work pathways and local government.
Goldman notes that the companyâs competitive position is underpinned by its focus on market niches that are under-served by both large and small enterprise software competitors. It expects this to support strong growth over the medium term.
In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.
The broker also highlights the companyâs defensive qualities, which could be important if Australia falls into a recession.
RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the companyâs earnings profile in an economic downturn.
Goldman has a buy rating and $4.60 price target on Readytech’s shares.
Before you consider Hipages Group Holdings Ltd., you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Hipages Group Holdings Ltd. wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
See The 5 Stocks
*Returns as of January 13th 2022
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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. has positions in and has recommended Hipages Group Holdings Ltd. and Readytech Holdings Ltd. The Motley Fool Australia has positions in and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.