A new month is upon us, so what better time to look to see if there are any additions you could make to your portfolio to take it to the next level.
If you're interested in growth shares, then you might want to take a look at the mid cap shares listed below.
Here's why they have been rated as buys:
Image source: Getty Images
Adore Beauty Group Limited (ASX: ABY)
Adore Beauty is a recently listed online retailer which sells third-party beauty and personal care products. It currently boasts over 590,000 Active Customers across the ANZ region on its platform and is expecting to generate revenue of $158.2 million in 2020. This will be a sizeable 76% increase on the prior corresponding period.
Pleasingly, its revenue of $158.2 million is still only a very small slice of the overall market. The company estimates that the ANZ beauty and personal care products market was worth $10.9 billion in 2019. And thanks to the proceeds from its IPO, management is aiming to grow its share of this market in the coming years.
Morgan Stanley is positive on its future. The broker recently put an overweight rating and $8.35 price target on the company's shares. This compares to the current Adore Beauty share price of $6.50. It believes the company will benefit from the shift to online shopping, which is accelerating because of COVID-19.
Bigtincan Holdings Ltd (ASX: BTH)
Another mid cap to look at is Bigtincan. It is a provider of sales enablement software which provides businesses with the information, content, and tools to sell more effectively. Demand for its platform has been growing strongly in recent years and even during the pandemic. This led to it recording strong recurring revenue growth in FY 2020 and guiding to more of the same in FY 2021.
FY 2021 has started strongly and led to management providing annualised recurring revenue (ARR) guidance in the range of $49 million to $53 million. This represents a 37% to 48% increase year on year.
One broker that has been pleased with its performance this year is Canaccord Genuity. It has put a buy rating and $1.40 price target on its shares.
