I think the mid cap side of the market is home to a good number of companies that have the potential to grow at a strong rate over the next decade.
This could make them great options for investors in search of market beating returns.
Three top mid cap shares to consider are listed below. Here's why I like them:
Bravura Solutions Ltd (ASX: BVS)
One of my favourite mid cap shares would have to be Bravura Solutions. It is a provider of software products and services to the wealth management and funds administration industries. I've been very impressed at the way the company has been growing over the last couple of years and was pleased to see this has continued in FY 2019. In the first half Bravura Solutions delivered revenue growth of 24% and EBITDA growth of 28% thanks largely to increasing demand for its wealth management platform. Another positive was that the company's recurring revenue increased 31% during the half and now comprises 72% of total revenue.
Macquarie Telecom Group Ltd (ASX: MAQ)
I believe Macquarie Telecom could be a great way for investors to gain exposure to the cloud computing boom. Whilst the company may provide telco services to corporate and government customers, the main driver of its future growth is expected to be its Hosting segment. This segment has been growing at a strong rate over the last few years and has continued doing so in FY 2019. In the first half the segment delivered a 14% increase in segment EBITDA to $15.3 million and looks set to build on this in the second half when it starts billing its Fortune 100 customer.
Zip Co Ltd (ASX: Z1P)
This payments company's shares may have been on fire in recent weeks, but I don't think it is too late to take a closer look. In the first half of FY 2019 Zip posted a 114% increase in revenue to $34.2 million thanks to record transaction volume of $495.2 million. In addition to this, Zip reported cash EBTDA of $2.4 million during the half, compared to a net outflow of $7.7 million a year earlier. Thanks to this strong result and its positive outlook, the company recently raised $42.8 million through an oversubscribed placement at $1.53 per share last week. The capital raising will be used to strengthen its balance sheet and allow the company to capitalise on growth opportunities, both organic and inorganic.
