2 strong ASX mid cap shares to buy

Pro Medicus Limited (ASX:PME) and this ASX mid cap share could be the ones to buy for the long term. Here’s why they are highly rated…

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RIO BHP Profit upgrade A business man open his shirt to reveal a superhero style $ on his chest, indicating a strong ASX share price

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If you are interested in investing in some promising mid cap shares, then you may want to take a look at the two listed below.

Both have a lot of potential and have been rated as buys recently. Here’s what you need to know about these ASX shares:

Collins Foods Ltd (ASX: CKF)

The first mid cap ASX share to look at is Collins Foods. It is one of Australia’s leading operators of quick service restaurants.

Collins Foods has a growing KFC network across Australia and also in the under-penetrated European market. In addition to this, the company has been successfully rolling out the Taco Bell brand across Australia.

It has been a very positive performer during the pandemic. For example, during the first half of FY 2021, Collins Foods reported an 11.3% increase in revenue to $499.6 million. Things were even better on the bottom line, with underlying net profit after tax coming in 15.1% higher at $27.5 million.

Positively, the company looks well-placed for growth over the next decade thanks to its store expansion opportunities. It also has the option of adding to its portfolio of brands through acquisitions, developments, or agreements. 

UBS believes the company is well-positioned to continue its strong performance over the medium term. In light of this, the broker currently has a buy rating and $11.65 price target on Collins Foods’ shares.

Pro Medicus Limited (ASX: PME)

Another mid cap ASX share to consider is Pro Medicus. It is a healthcare technology company providing healthcare institutions with high quality radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions to healthcare organisations globally.

A number of the largest healthcare institutions in the world have been adopting its technology on long term contracts in recent years. This has continued in FY 2021, with the company reporting a series of major contract wins.

As a result, Pro Medicus looks well-positioned to continue its strong earnings growth for a long time to come.

One broker that expects this to be the case is Goldman Sachs. It has been pleased with its performance in FY 2021 and recently upgraded Pro Medicus’ shares to a buy rating with a $53.80 price target.

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James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia has recommended Collins Foods Limited and Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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