If you are interested in investing in some promising mid cap shares, then you may want to take a look at the two listed below.
Both have a lot of potential and have been rated as buys recently. Here’s what you need to know about these ASX shares:
Adore Beauty Group Limited (ASX: ABY)
The first mid cap share to look at is Adore Beauty. It is a growing online beauty retailer that has almost 600,000 active customers in an Australian beauty and personal market worth ~$11 billion a year.
Analysts at Morgan Stanley are big fans of the company and believe its shares are in the buy zone right now. Particularly given how far they have fallen from their IPO price of $6.75 late last year.
Due to the growing popularity of its website and the ongoing shift to online shopping, Adore Beauty has been tipped for strong growth in the coming years.
Morgan Stanley has an overweight rating and $8.35 price target on the company’s shares. This compares to the current Adore Beauty share price of $6.17.
ELMO Software Ltd (ASX: ELO)
Another mid cap ASX share to look at is ELMO. It is a cloud-based human resources and payroll software company.
ELMO’s software gives businesses a unified platform to streamline processes such as employee administration, recruitment, and payroll. It has recently been bolstering its offering with the acquisitions of Webexpenses for 13 million pounds and Breathe for $32 million.
The acquisition of these UK based businesses has gone down reasonably well with analysts at Morgan Stanley. The broker was also pleased to see that management has reiterated its organic growth guidance for FY 2021.
So much so, Morgan Stanley has recently put an overweight rating and $9.70 price target on its shares. This compares to the latest ELMO share price of $7.00.
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 June 30th
More reading
- 2 stellar mid cap ASX growth shares to buy right now
- These ASX growth shares could give your portfolio a big boost
- What’s in store for the ASX tech sector in 2021?
- What does 2021 hold for ASX retail shares?
- 2 fantastic ASX growth shares that could beat the market in 2021
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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