If you're interested in investing in some promising mid cap shares, then you may want to take a look at the ones listed below.
Both have a lot of potential and have been rated as buys recently. Here's what you need to know about them:
Adore Beauty Group Limited (ASX: ABY)
Adore Beauty is a growing online beauty retailer that could be worth a closer look. At the last count, the company had over 590,000 active customers in an Australian beauty and personal market worth ~$11 billion a year at present.
Due to the growing popularity of its website and the ongoing shift to online shopping, it appears well-placed to capture a growing slice of this market over the next decade.
Analysts at Morgan Stanley believe the company's shares are in the buy zone right now. Especially after the sizeable pullback in its share price since listing on the Australian share market. After landing on the ASX with a listing price of $6.75, its shares are now down 24% at $5.10.
This is notably lower than what Morgan Stanley believes its shares are worth. It has an overweight rating and $8.35 price target on the company's shares.
Kogan.com Ltd (ASX: KGN)
Kogan is one of Australia's leading ecommerce companies. It has been a big winner from the shift to online shopping caused by the pandemic in 2020. This has led to the company recording a huge lift in active customers and an even greater lift in its sales and earnings.
Pleasingly for the company, the shift to online shopping is still only in its infancy and has a lot further to go over the next decade or two. Which, given the strength of its offering and the popularity of its Marketplace, appears to have put Kogan in a strong position for growth over the long term.
In addition to this, the company has been bolstering its growing inorganically with acquisitions. One of these was announced recently with the $122 million acquisition of New Zealand-based Mighty Ape.
Analysts at Credit Suisse were pleased with this acquisition and upgraded Kogan's shares to an outperform rating with a $20.60 price target.
