If small caps are a little too risky for your liking, then maybe mid cap ASX shares would be more suitable. These are often well-established companies that still have significant runways for growth ahead of them.
With that in mind, I have picked out two mid cap ASX shares that are rated highly. Here's what you need to know about them:
Jumbo Interactive (ASX: JIN)
The first mid cap ASX share to consider buying is Jumbo. It is an online lottery ticket seller best-known as the operator of the Oz Lotteries website.
It has been benefiting greatly from the shift to online gambling in the Australian market and looks well placed to capitalise on the same trend internationally. This is thanks to its Powered by Jumbo Software as a Service (SaaS) offering.
Last year the company estimated that the Powered by Jumbo business has a US$303 billion global total addressable market, with just ~7% of this market online at present.
Morgans currently has an add rating and $14.78 price target on its shares. This compares to the latest Jumbo share price of $13.96.
Nearmap Ltd (ASX: NEA)
Another mid cap ASX share to consider buying is Nearmap. It is a leading aerial imagery technology and location data company which gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.
This platform means that users can undertake site visits from the comfort of their home or workplace. This provides significant time and cost savings for users.
While Nearmap's growth has been a bit up and down in recent years, management appears confident that it is heading in the right direction again. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.
Goldman is confident in its growth trajectory and has put a buy rating and $2.75 price target on its shares. In addition to this, the broker feel that the capital raisings are likely to be over and that Nearmap has the balance sheet strength to see it through to profitability in FY 2023. The Nearmap share price ended the week at $2.21.
