In the mid cap side of the Australian share market, I believe there are a number of shares that have the potential to become much larger companies in the future.
Two mid cap shares that tick a lot of boxes for me are listed below. Here's why I think they could grow significantly over the next decade:
Kogan.com Ltd (ASX: KGN)
I think that this ecommerce company could be a great long-term investment. Over the last few years it has been benefiting greatly from the structural change that is happening in the retail industry. Pleasingly for the company and its shareholders, this change has been accelerated by the pandemic. In fact, Adobe estimates that the pandemic has accelerated ecommerce growth by 4 to 6 years. This looks set to underpin exceptionally strong earnings growth for Kogan in FY 2020 and FY 2021. Which could yet be boosted further inorganically. Last month the company announced a $115 million capital raising (which was later revised to $120 million). It intends to use the funds to acquire businesses that will add value and drive further growth.
Megaport Ltd (ASX: MP1)
Another exciting tech share to look at is Megaport. It is a provider of elastic interconnection services across data centres globally. This service allows its users to increase and decrease their available bandwidth in response to their own demand requirements. The benefit of this is that it means they don't need to be tied to fixed service levels on long-term and expensive contracts. Instead, they can just use what they need, when they need it. Thanks to the quality of its service and the cloud computing boom, demand for its services has been growing very strongly and has driven further strong revenue growth in FY 2020. Pleasingly, with the migration to the cloud expected to accelerate because of the pandemic, Megaport appears well-placed to continue its growth for many years to come.
