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2 exciting mid cap ASX shares with long runways for growth

A young boy sits on his dad's shoulders while both flex their musicles, indicating ASX share price growth
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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.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

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 and recommends Jumbo Interactive Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Jumbo Interactive Limited and Nearmap 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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