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 3 buy rated mid cap ASX shares for the long term 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:
ELMO Software Ltd (ASX: ELO)
The first mid cap ASX share to look at is ELMO. It is a HR and payroll platform provider that has been growing at a rapid rate over the last few years and even during the pandemic.
Its popular software platform allows businesses to simplify and streamline a wide range of tasks. Demand has been strong, leading to strong recurring revenue growth over the last few years. And thanks to acquisitions and its large addressable market, more of the same is expected in the coming years.
Shaw & Partners is bullish on ELMO. It currently has a buy rating and and $9.00 price target.
IDP Education Ltd (ASX: IEL)
Another mid cap ASX share to look at is IDP Education. It is a leading provider of international student placement and English language testing services. Demand for its services was hit hard due to COVID-19, but things are improving rapidly. For example, at the end of the first half, the company reported that testing volumes were broadly in line with those experienced in the final month of 2019 before the pandemic.
And while the terrible outbreak in the key market of India will be a short term setback, it looks well-placed to continue its recovery once things are under control again.
Macquarie is a fan of the company, particularly given its investments in its digital business. Macquarie feels this side of the business will support margin expansion as the recovery continues. The broker has an outperform rating and $30.80 price target on its shares.
Another mid cap ASX share to consider is Nuix. It is a leading provider of investigative analytics and intelligence software. The company’s Discover, Workstation, and Investigate platforms allow businesses and governments to transform huge amounts of data from various sources into actionable intelligence. Nuix counts the likes of AIG, Airbus, Amazon, BDO, HSBC, Samsung, and Unilever as customers.
Unfortunately, the pandemic has well and truly caught up on the company recently. This has led to a significant reduction in demand and changes in its sales mix. However, with the Nuix share price being sold off, this development appears to be fully priced in now.
Morgan Stanley believes this has created a buying opportunity for investors. It has a buy rating and $7.50 price target on its shares. The broker believes the global forensic and investigative software market is a structural growth story and that Nuix is well-positioned inside it.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
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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 recommends Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended Elmo Software and Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.