One area of the market which I continue to believe is home to a large number of quality options for investors is the mid cap space.
Three top mid cap shares which I believe could one day become large caps are listed below. Here's why I think they would be great long-term investments:
Bellamy's Australia Ltd (ASX: BAL)
Although I think its shares are looking fully valued at the moment after a strong gain in 2019, I would still be a buyer of this infant formula and baby food company's shares if you plan on holding them for the long-term. FY 2019 is expected to be another disappointing year for the company due to delays in gaining the SAMR accreditation required to sell its products in China. But if the company can get the accreditation by the end of the financial year, then I believe its sales and earnings growth could be explosive in FY 2020. Especially after the company recently embarked on a major marketing campaign in the massive market.
Bravura Solutions Ltd (ASX: BVS)
Bravura is a leading provider of software products and services to the wealth management and funds administration industries globally. The key product in its portfolio is the Sonata wealth management platform. Thanks to increasing demand for this product, Bravura grew revenue by 24% to $127.4 million and EBITDA by 28% to $23.8 million in the first half of FY 2019. The good news is that management believes Sonata's strong growth can continue thanks to its massive market opportunity. I expect this to underpin strong earnings growth for some time to come.
Webjet Limited (ASX: WEB)
Another top option in the mid cap space is this $2 billion online travel agent. I'm a big fan of Webjet and believe it has outstanding long-term growth potential thanks to the increasing popularity of its numerous B2B and B2C brands, the ongoing shift to online travel booking, and the global tourism boom. On Tuesday the company confirmed that it is on track to deliver at least $120 million EBITDA in FY 2019, which will be a 37% increase year on year.
