I'm a big fan of investing in the mid cap space as I believe there are a good number of shares at this side of the market that have the potential to become much larger companies in the future.
Three mid cap shares that I think have the potential to grow significantly over the next decade are listed below. Here's why I like them:
Bravura Solutions Ltd (ASX: BVS)
Bravura Solution is a fast-growing provider of software and services to the wealth management and funds administration industries. I've been very impressed at the way the company has been performing in recent years and particularly its Sonata wealth management platform. This platform has been growing at a very strong rate and looks set to continue doing so over the coming years thanks to its quality and large global market opportunity. Bravura Solutions' growth could be given an added boost if it can successfully complete the acquisition of GBST Holdings Limited (ASX: GBT).
Macquarie Telecom Group Ltd (ASX: MAQ)
Another mid cap share to consider buying is Macquarie Telecom due to its exposure to the cloud computing boom. It is a provider of telco and hosting services to corporate and government customers. It is the latter offering that is expected to be the key driver of growth for the company over the coming years. Its Hosting segment has been growing at a very strong rate and appears well-positioned to continue doing so after recent capacity expansions were made in order to capture the increasing demand for data centre services in Australia.
Zip Co Ltd (ASX: Z1P)
This payments company has broken out of the shadow of Afterpay Touch Group Ltd (ASX: APT) in 2019 and delivered very impressive revenue, customer, and transaction growth. In the first half of FY 2019 Zip Co posted a 114% increase in revenue to $34.2 million and cash EBTDA of $2.4 million. The latter compared to a net outflow of $7.7 million during the prior corresponding period. This was driven by strong customer growth and record transaction volume of $495.2 million. I remain confident that recent additions to its platform and increasing customer numbers will drive further strong growth in the second half and FY 2020.
