Are you looking for some options in the mid cap space? If you are, you might want to check out the ones listed below.
Here’s why analysts at Goldman Sachs think these ASX mid cap shares could be in the buy zone right now:
Hipages Group Holdings Ltd (ASX: HPG)
The first mid cap ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider.
The Hipages platform connects tradies with residential and commercial consumers, and also allows them to communicate and run general admin duties.
Goldman Sachs is positive on the company and sees it as a great long term option for investors. In response to recent share price weakness, it commented:
The fundamentals of this business remain very strong, and we see a number of drivers transforming this marketplace into an essential ecosystem for tradies over the long term.
Goldman Sachs has a buy rating and $2.50 price target on its shares.
Readytech Holdings Ltd (ASX: RDY)
Another mid cap share that Goldman likes is Readytech.
It owns a portfolio of enterprise software businesses across several market verticals. This includes higher education, HR/payroll, work pathways and local government.
Goldman notes that the company’s competitive position is underpinned by its focus on market niches that are under-served by both large and small enterprise software competitors. It expects this to support strong growth over the medium term.
In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.
The broker also highlights the company’s defensive qualities, which could be important if Australia falls into a recession.
RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company’s earnings profile in an economic downturn.
Goldman has a buy rating and $4.60 price target on Readytech’s shares.