In the mid cap side of the Australian share market I think there are a number of companies with the potential to grow materially in the future.
Three that I feel could be destined for a big 2020 are listed below. Here's why I like them:
Bravura Solutions Ltd (ASX: BVS)
One of my favourite mid cap ASX shares is Bravura Solutions. I think the provider of software products and services to the wealth management and funds administration industries has the potential to grow materially over the next decade. This is thanks to the sizeable market opportunity of its key Sonata wealth management platform and recent acquisitions. These acquisitions have opened the company up to new lucrative markets which could underpin solid earnings growth for some time to come.
Kogan.com Ltd (ASX: KGN)
Another mid cap ASX share which I think could have a big 2020 is Kogan. After a strong finish to FY 2019, it appears well-placed to deliver a strong profit result in the new financial year. Especially given the continued rise in online shopping and the growing popularity of its website and products. In addition to this, the launch of Kogan Marketplace and its expansion into potentially lucrative verticals such as energy and mobile could drive strong growth over the next decade.
Zip Co Ltd (ASX: Z1P)
A final mid cap share to consider is Zip Co. The buy now pay later platform provider's shares have been on fire in 2019, but I wouldn't let that put you off investing in 2020. In FY 2019 Zip Co grew its transaction volume by 108% and customer numbers by 80%. The good news is that management appears confident this strong form can continue. It is aiming to almost double both these metrics in FY 2020. Given the positive industry tailwinds and its expansion into new geographies and verticals, I wouldn't bet against this being achieved.
