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Why I would buy Nanosonics and these mid cap ASX growth shares

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)

This infant formula company’s shares have come under significant pressure over the last 12 months due to the surprisingly lengthy delay in receiving the SAMR accreditation required to sell its organic products in China. Bellamy’s applied for this accreditation at the end of 2017 and it has still not been granted. Unfortunately, this means that its sales have been impacted significantly and profits are likely to be lower this year. However, I remain confident that SAMR accreditation is coming and will give its sales a major lift when it does. This could make it worth being patient with Bellamy’s and buying shares with a long term view.

Nanosonics Ltd (ASX: NAN)

One of my favourite options in the mid cap space is this leading infection control specialist. Nanosonics has been experiencing strong demand for its industry-leading trophon EPR disinfection system for ultrasound probes. This has led to strong sales of both the product and the consumables that it uses. Given its large market opportunity and the quality of the product, I believe it is well-positioned to deliver strong sales growth for some time to come. Especially with management aiming to add to the trophon EPR product with the launch of several new products targeting unmet needs in the near term.

Webjet Limited (ASX: WEB)

A third and final mid cap share to consider buying is Webjet. I believe the online travel agent has very strong long-term growth prospects thanks to the growing popularity of its B2B and B2C brands and the continued shift to online booking. In addition to this, the company has a track record of taking advantage of the highly fragmented travel booking market by making successful earnings accretive acquisitions. If Webjet continues this trend in the coming years, then I expect there’s a strong chance its shares will generate outsized returns again over the next decade.

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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 Nanosonics Limited. The Motley Fool Australia has recommended Bellamy's Australia, Nanosonics Limited, and Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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