If you're looking for some new additions to your portfolio, you might want to take a look at the mid cap space.
At this side of the market, there are a number of companies with the potential to grow materially over the next decade or two.
But which mid cap ASX shares should you buy? Two to consider are listed below:
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Adore Beauty Group Limited (ASX: ABY)
Adore Beauty could be a mid cap ASX share to buy. It is Australia's leading online beauty retailer, providing an empowering and engaging beauty shopping experience.
One of the important differences between Adore Beauty and other retailers is that it is so much more than just a place to shop. Adore Beauty's website is also a destination for education and entertainment. This means that many beauty consumers frequent its website even when they are not seeking to purchase items.
At the last count, the company had almost 800,000 active customers. This was up 82% since the end of December 2019, underpinning an 85% increase in first-half revenue to $96.2 million.
Positively, when you annualise this figure, it is still only a small portion of an Australian beauty and personal market currently worth ~$11 billion a year.
One broker that is confident in its outlook is Morgan Stanley. It currently has an overweight rating and $8.75 price target on the company's shares.
Megaport Ltd (ASX: MP1)
Another mid cap ASX share to consider is Megaport. It is a leading global provider of elastic interconnection services across data centres globally.
With Megaport's networking equipment now installed in hundreds of data centres across the world, it has created a software layer that provides an easy way for users to create and manage network connections. This allows users to create and run a global network with or without the need for physical infrastructure. Given the shift to the cloud, this is becoming increasingly attractive for businesses.
Last month Megaport released its half year results and revealed that its Monthly Recurring Revenue (MRR) has increased 37% to $6.3 million. This annualises to revenue of $75.6 million.
Goldman Sachs has been pleased with its performance. In response to its result, the broker put a buy rating and $15.55 price target on Megaport's shares. Goldman believes the company is going to benefit greatly from the migration to public cloud infrastructure.
