If you are interested in investing in some promising mid cap shares, then you may want to take a look at the two listed below.
Both have a lot of potential and have been rated as buys recently. Here's what you need to know about these ASX shares:
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Adore Beauty Group Limited (ASX: ABY)
The first mid cap share to look at is Adore Beauty. It is a growing online beauty retailer that has almost 600,000 active customers in an Australian beauty and personal market worth ~$11 billion a year.
Analysts at Morgan Stanley are big fans of the company and believe its shares are in the buy zone right now. Particularly given how far they have fallen from their IPO price of $6.75 late last year.
Another positive its outlook. Due to the growing popularity of its website and the ongoing shift to online shopping, Adore Beauty has been tipped for strong growth in the coming years.
Morgan Stanley has an overweight rating and $8.35 price target on the company's shares. This compares to the current Adore Beauty share price of $6.17.
ELMO Software Ltd (ASX: ELO)
Another mid cap ASX share to look at is ELMO. It is a cloud-based human resources and payroll software company.
ELMO's software gives businesses a unified platform to streamline processes such as employee administration, recruitment, and payroll. It has recently been bolstering its offering further with the acquisitions of Webexpenses for 13 million pounds and Breathe for $32 million.
The acquisition of these UK based businesses has gone down reasonably well with analysts at Morgan Stanley. The broker was also pleased to see that management has reiterated its organic growth guidance for FY 2021.
In light of this, Morgan Stanley has recently put an overweight rating and $9.70 price target on its shares. This compares to the latest ELMO share price of $7.00.
