2 top mid cap ASX shares that could be buys for growth investors

These mid caps could be top options for growth investors…

| More on:
steps to picking asx shares represented by four lightbulbs drawn on chalk board

Image source: Getty Images

If small caps are too high on the risk scale for your tastes, then you might be better off looking at the mid cap space. These companies are lower down the risk scale but still have the potential to generate outsized returns for investors in the future.

With that in mind, I have picked out two mid caps that are highly rated right now. Here’s what you need to know about them:

Bravura Solutions Ltd (ASX: BVS)

The first mid cap ASX share to look at is Bravura. It is a leading provider of software solutions for the wealth management and funds administration industries.

Bravura has a portfolio of solutions that are both high quality and have significant market opportunities. This includes the popular Sonata wealth management platform, which allows financial advisers to connect and engage with clients via computers or smart devices.

In addition, the company’s portfolio includes FinoCamp, Midwinter, and Delta Financial Systems. FinoCamp builds unique and highly flexible software that supports the UK wealth market, Midwinter is a financial planning software provider, and Delta Financial Systems provides technology to power complex pensions administration in the UK market.

After a couple of years of significant headwinds from Brexit and COVID-19, Bravura looks to be back on the right path again. It recently reaffirmed its guidance for FY 2021 net profit after tax of $32 million to $35 million and second half revenue growth of 10% half on half.

Goldman Sachs is a fan of the company. It currently has a buy rating and $3.90 price target on its shares. The broker believes it has a massive growth opportunity in the UK and ANZ markets.

Hipages Group Holdings Ltd (ASX: HPG)

Another mid cap ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider that connects tradies with residential and commercial consumers. The Hipages platform not only helps tradies grow their businesses by providing job leads, it also allows them to communicate with customers and run general admin duties.

At the last count, over three million Australians had used Hipages, providing more work to over 34,000 trade businesses subscribed to the platform.

Goldman Sachs is also very positive on the company and sees it as a great long term option. It highlights that the company currently captures around 5% of total industry advertising spend. However, it sees scope for this to increase to 40% to 60% in the future as the company builds out its ecosystem.

Goldman Sachs recently put a buy rating and $3.40 price target on its shares.

Should you invest $1,000 in Bravura right now?

Before you consider Bravura, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Bravura wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor 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 has recommended Bravura Solutions Ltd and Hipages Group Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

A young woman lifts her glasses with one hand as if to take a closer look at something as she has a look of surprised interest on her face with her mouth in an O shape.
Dividend Investing

2 ASX shares that could be buys for both growth and dividends

There are a select group of ASX shares that could deliver growth and income.

Read more »

A business man in soft-focus holds two fingers in the air in the foreground of the shot as he stands smiling in the background against a clear sky.
Broker Notes

Buy these 2 ASX shares on sale right now: top broker

A top broker has revealed two ASX shares which have fallen heavily but look like good buys.

Read more »

Growth Shares

Experts name 2 beaten down ASX growth shares to buy after the market meltdown

These beaten down growth shares could be in the buy zone...

Read more »

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market
Growth Shares

Analysts name 2 ASX shares to buy with ~50% upside potential

These ASX shares could have major upside potential according to analysts...

Read more »

A woman holds a lightbulb in one hand and a wad of cash in the other
Growth Shares

Why I would invest $10,000 into these ASX 200 shares right now

Here are a couple of ASX shares I would buy following recent market weakness.

Read more »

Concept images of four piles of coins, each getting higher, with trees on them.
Growth Shares

3 top ASX growth shares I’d buy next week

Xero is one of the ASX growth shares that I think looks good value today.

Read more »

A white and black clock face is shown with three hands saying Time to Buy reflecting Wilson Asset Management's two ASX share picks in its WAM Research portfolio
Growth Shares

Buy these great value 2 ASX growth shares: experts

Airtasker is one of the ASX shares that offers plenty of upside, a broker says.

Read more »

Person pointing finger on on an increasing graph which represents a rising share price.
Growth Shares

Here are 2 ASX growth shares experts have named as buys

Here are a couple of growth shares analysts are tipping as buys...

Read more »