2 exciting mid cap ASX shares to buy and hold

Nuix Limited (ASX:NXL) and this ASX mid cap share could be great buy and hold options for Australian investors. Here's why…

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If you're looking for buy and hold options, then you might want to take a look at the mid cap space.

At this side of the market, there are a number of companies with the potential to grow materially over the next decade or two.

If these companies deliver on their potential, their shares could generate mouth-watering returns for investors.

With that in mind, here are two mid cap ASX shares to consider as buy and holds:

Adore Beauty Group Limited (ASX: ABY)

The first mid cap ASX share to consider is Adore Beauty. It is the country's leading pureplay online beauty retailer. It aims to deliver users an empowering and engaging beauty shopping experience personalised to their needs.

This means that as well as being a place to buy beauty products, its website is also a destination for education and entertainment. As a result, beauty consumers frequent its website even when they are not seeking to purchase items.

This strategy is working wonders for Adore Beauty. This week it released its half year results and revealed an 82% increase in active customers to 777,000. From these customers, the company generated revenue of $96.2 million over the six months. This was an increase of 85% on the prior corresponding period.

Pleasingly, this is still only scratching at the surface of a growing Australian beauty and personal market currently worth ~$11 billion a year.

Analysts at Morgan Stanley currently have an overweight rating and $8.35 price target on the company's shares. This compares to the latest Adore Beauty share price of $5.49.

Nuix Limited (ASX: NXL)

Another mid cap ASX share to consider as a buy and hold option is Nuix. It is a growing provider of investigative analytics and intelligence software.

Its Discover, Workstation, and Investigate platforms allow users to transform massive amounts of data from emails, social media, communications, and other human-generated content into actionable intelligence.

Given how much data people and businesses are generating today, it's no surprise that demand for its offering is growing fast.

In fact, in FY 2020 the company reported an impressive 25.9% increase in total revenue to $175.9 million. Positively, this revenue is largely (~89%) from recurring subscriptions. This gives it a great base to build from.

Morgan Stanley is also a fan of Nuix. It currently has an overweight rating and $11.00 price target on the company's shares. The broker feels the company is a structural growth story.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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