Are you looking for options in the mid cap space? If you are, you might want to check out the ones listed below.
Here’s why analysts think these ASX mid cap shares could be in the buy zone right now:
IDP Education Ltd (ASX: IEL)
The first mid cap ASX share to look at is IDP Education. It is a leading provider of international student placement and English language testing services.
Although the company was hit hard by COVID-19 for obvious reasons, it is now bouncing back strongly. In fact, by the end of the first half, the company reported that testing volumes were broadly in line with those experienced in the final month of 2019 prior to the pandemic.
This bodes well for its second half performance. Especially given how many of its competitors were not as lucky and haven’t survived the crisis. This puts the company in a position to increase its market share once trading conditions return to normal.
Analysts at Macquarie are positive on the company, particularly given its investments in its digital business. Macquarie feels this side of the business will support margin expansion as the recovery continues.
Macquarie has an outperform rating and $30.80 price target on IDP Education’s shares.
Another mid cap ASX share to consider is Nuix. It is a leading provider of investigative analytics and intelligence software.
The company’s Discover, Workstation, and Investigate platforms allow businesses and governments to transform huge amounts of data from various sources into actionable intelligence.
Among its customers are the likes of AIG, Airbus, Amazon, BDO, HSBC, Samsung, and Unilever.
Unfortunately, the pandemic appears to have caught up on the company recently, leading to reduced demand and changes in its sales mix. This led to Nuix downgrading its guidance for FY 2021 last week, much to the dismay of shareholders.
Nevertheless, analysts at Morgan Stanley believe the sell off that ensued is a buying opportunity. Last week it retained its buy rating but trimmed its price target to $7.50.
Morgan Stanley believes the global forensic and investigative software market is a structural growth story and that Nuix is well-positioned within it.