3 growing mid cap ASX shares named as buys

These mid cap ASX shares are growing at a strong rate…

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If small cap shares are a little too high risk 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 over the long term.

With that in mind, I have picked out three mid cap ASX shares that have been rated as buys. Here's what you need to know about them:

Audinate Group Limited (ASX: AD8)

The first mid cap ASX share to look at is this digital audio-visual networking technologies provider. Audinate is the company behind the industry-leading Dante audio over IP networking solution. Demand for the solution rebounded strongly in FY 2021, leading to the company reporting a 22.5% increase in revenue to US$25 million.

UBS is very positive on Audinate. Last week its analysts put a buy rating and $11.75 price target on its shares.

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. It has been growing at a strong rate in recent years and this continued in FY 2021. This saw the company report a 22% year on year jump in revenue to $55.8 million. It also reported a 27% increase in its monthly recurring revenue (MRR) to $5.2 million.

Goldman Sachs believes the company is well-placed for growth over the long term. It currently has a buy rating and $4.35 price target on its shares.

Nearmap Ltd (ASX: NEA)

A final mid cap ASX share to consider buying is Nearmap. The leading aerial imagery technology and location data company's platform gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. Demand has been increasing for its offering, particularly in the North American market. Pleasingly, management appears confident this will continue. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Morgan Stanley remains bullish on the company's prospects. Last month it retained its overweight rating and $3.20 price target on its shares.

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 AUDINATEGL FPO, Hipages Group Holdings Ltd., and Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and Nearmap 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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