2 quality mid cap ASX shares to buy in December

Adore Beauty Group Limited (ASX:ABY) and this ASX mid cap share could be great options for investors in December. Here's why…

Earlier today I looked at the small cap side of the market. You can read about that here.

If small caps are too high risk for your liking, then you might want to take a look at the mid cap shares listed below.

Here's what you need to know about them:

man jumping for joy carrying shopping bags

Image source: Getty Images

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is a recently listed online retailer which sells third-party beauty and personal care products. It currently boasts over 590,000 Active Customers across the ANZ region on its platform. From these customers, the company is expecting to generate revenue of $158.2 million in 2020. This will be an impressive 76% increase on the prior corresponding period.

While this might sound like a big number, it is still only a small slice of the overall market. The company notes that Frost & Sullivan estimates that the ANZ beauty and personal care products market was worth $10.9 billion in 2019. Management is aiming to grow its market share in the coming years and intends to use the proceeds from its IPO to support its ambitions.

One broker that is positive on its prospects is Morgan Stanley. It recently put an overweight rating and $8.35 price target on the company's shares. This compares to the current Adore Beauty share price of $6.50. It believes the company will benefit from the shift to online shopping, which is accelerating because of the pandemic.

Nanosonics Ltd (ASX: NAN)

Nanosonics is the infection prevention company responsible for the industry leading trophon EPR disinfection system for ultrasound probes. While the company's growth was stifled by the pandemic, it has recently revealed an uptick in its performance. It advised that its trophon installed base was up 16% globally during the first four months of FY 2021.

Analysts at UBS believe the company is well-positioned for long term to growth thanks to the growing importance of infection prevention following the COVID-19 pandemic. It considers Nanosonics as a high-quality and structural growth story and has placed a buy rating and $7.20 price target on its shares. The Nanosonics share price is trading at $6.66 on Monday.

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 Nanosonics Limited. 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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