Goldman Sachs names 3 mid-cap ASX shares to buy

Goldman Sachs is saying good things about these mid-cap shares.

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If you have a higher-than-average risk tolerance, then it could be worth checking out the mid-cap ASX shares listed below.

That's because analysts at Goldman Sachs have just named them as buys and are tipping strong returns from their shares.

Here's what the broker is saying about these mid-cap ASX shares:

Life360 Inc (ASX: 360)

Goldman has a buy rating and a $10.50 price target on this location technology company's shares. This suggests a potential upside of 23%.

Its analysts feel that Life360 could outperform expectations in FY 2023. It said:

360 (Buy) is gathering momentum heading into its seasonally strongest quarters supported by Tile bundling benefits, with potential further upside to FY23E EBITDA guidance.

Lifestyle Communities Ltd (ASX: LIC)

Another mid-cap ASX share that Goldman Sachs is positive on is Lifestyle Communities. It has a conviction buy rating and $25.15 price target on the land lease communities developer's shares. This implies an almost 50% upside for investors.

Goldman expects structural tailwinds to support its long-term growth. It said:

LIC (Buy, on CL) provided conservative medium term settlement guidance, in our view, given the size of its development pipeline and an improving demand backdrop. Cash flow should improve following a year of heavy investment in FY23, while we remain bullish on long-term structural tailwinds including an ageing population and housing supply shortage

Macquarie Technology Group Ltd (ASX: MAQ)

The broker has a conviction buy rating and a $77.70 price target on this data centre-focused technology company's shares. This suggests a potential upside of 18% over the next 12 months.

Goldman believes the company is well-positioned to deliver very strong earnings growth in the coming years. It explains:

MAQ (Buy, on CL) remains our top pick, with its IC3W capacity upsize demonstrating the positive inflection point in DC [data centre] demand (catalysed by both cloud and AI), and balance sheet capacity to accelerate DC growth following the June equity raising. MAQ's upcoming IC3W DA approval should serve as a positive catalyst to draw attention to its significant earnings growth over the next 5 years.

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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