These mid caps could be top options for growth investors…
The post 2 top mid cap ASX shares that could be buys for growth investors appeared first on The Motley Fool Australia. –
If small caps are too high on the risk scale for your tastes, then you might be better off looking at the mid cap space. These companies are lower down the risk scale but still have the potential to generate outsized returns for investors in the future.
With that in mind, I have picked out two mid caps that are highly rated right now. Here’s what you need to know about them:
Bravura Solutions Ltd (ASX: BVS)
The first mid cap ASX share to look at is Bravura. It is a leading provider of software solutions for the wealth management and funds administration industries.
Bravura has a portfolio of solutions that are both high quality and have significant market opportunities. This includes the popular Sonata wealth management platform, which allows financial advisers to connect and engage with clients via computers or smart devices.
In addition, the company’s portfolio includes FinoCamp, Midwinter, and Delta Financial Systems. FinoCamp builds unique and highly flexible software that supports the UK wealth market, Midwinter is a financial planning software provider, and Delta Financial Systems provides technology to power complex pensions administration in the UK market.
After a couple of years of significant headwinds from Brexit and COVID-19, Bravura looks to be back on the right path again. It recently reaffirmed its guidance for FY 2021 net profit after tax of $32 million to $35 million and second half revenue growth of 10% half on half.
Goldman Sachs is a fan of the company. It currently has a buy rating and $3.90 price target on its shares. The broker believes it has a massive growth opportunity in the UK and ANZ markets.
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 that connects tradies with residential and commercial consumers. 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.
At the last count, over three million Australians had used Hipages, providing more work to over 34,000 trade businesses subscribed to the platform.
Goldman Sachs is also very positive on the company and sees it as a great long term option. It highlights that the company currently captures around 5% of total industry advertising spend. However, it sees scope for this to increase to 40% to 60% in the future as the company builds out its ecosystem.
Goldman Sachs recently put a buy rating and $3.40 price target on its shares.
The post 2 top mid cap ASX shares that could be buys for growth investors appeared first on The Motley Fool Australia.
Should you invest $1,000 in Bravura right now?
Before you consider Bravura, 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 Bravura wasn’t one of them.
The online investing service he’s run for nearly 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.
*Returns as of May 24th 2021
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 Bravura Solutions Ltd and Hipages Group Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.