I think in the mid cap part of the Australian share market there are a good number of high-quality shares with strong long-term growth prospects.
Three that tick a lot of boxes for me right now are listed below. Here's why I like them:
Bapcor Ltd (ASX: BAP)
Bapcor, formerly known as Burson Auto Parts, is one of Australia's largest suppliers of car parts and accessories and has a growing footprint across the Australian and New Zealand markets. It was a strong performer in FY 2018 and posted pro forma net profit after tax growth of 31.6% to $86.5 million thanks to positive performances from all business segments. The highlight for me was its Wholesale segment which posted a 37.7% increase in EBITDA. The good news is that I feel confident that this strong form can continue in FY 2019 thanks to its expansion plans and organic growth.
Lovisa Holdings Ltd (ASX: LOV)
While this fast-growing fashion accessories retailer delivered a strong result in FY 2018, it wasn't as strong as some investors had hoped and its shares have pulled back meaningfully since. They are, however, still up 86% since this time last year. Despite this, I believe this pullback has created a buying opportunity for investors and feel Lovisa's successful international expansion still has a significant runway for growth. So, with its shares now changing hands at 26x estimated forward earnings, I think they are fairly priced given its positive growth profile.
Macquarie Telecom Group Ltd (ASX: MAQ)
Another mid cap share that I think would be a great buy and hold option is this data centre, cloud, cyber security, and telecom company. I've been very impressed and the way the company's Cloud Services segment has quickly become its biggest contributor to earnings and expect it to be an even bigger contributor in the future due to its plans to expand its data centre capacity significantly. I expect this expansion to put the company in a great position to capture the growing demand for data centre services brought about by the cloud computing boom.
