If small caps are a little too risky for your liking, then maybe mid cap ASX shares would be more suitable. These are often well-established companies that still have significant runways for growth ahead of them.
With that in mind, I have picked out two mid cap ASX shares that are rated highly. Here's what you need to know about them:
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Life360 Inc (ASX: 360)
Life360 is a $980 million San Francisco-based app maker. It is on a mission to bring families closer and believes ensuring that loved ones are safe and secure is the place to start.
Its app is currently used by 28 million monthly active users globally. They are taking advantage of important solutions such as real-time location sharing and notifications, and driver safety features such as crash detection and roadside assistance.
Life360 has also just strengthened its offering with the acquisition of Jiobit for US$37 million. Management notes that the addition of the wearable location device provider is very supportive of its growth strategy and opens up cross-selling opportunities.
Credit Suisse is very positive on the company's prospects. The broker currently has an outperform rating and $8.30 price target on its shares. It sees plenty of opportunities for the company to further monetise its huge user base.
MNF Group Ltd (ASX: MNF)
MNF is a $460 million communication software company. It develops and operates a global communications network and software suite that allows some of the world's leading innovators to deliver new-generation communications solutions. This includes the likes of Google, Twilio, and Zoom.
It has been growing at a solid rate over the last decade and appears well-positioned to continue this positive form over the next decade. This is thanks to a number of tailwinds, such as the work from home trend, and its international expansion. In respect to the latter, the company is due to launch in Singapore at the start of next month and is conducting due diligence in other Asia-Pacific markets.
In addition to this, the company has just signed an agreement to sell part of its Direct business for $31 million. This is expected to simplify the business, grow recurring revenues, and allow management to focus on growing the MNF wholesale business, Symbio. It will also provide funds to make potentially value accretive acquisitions.
Morgan Stanley is a fan of the company and remains positive on its long term growth prospects. Earlier this month it put an overweight rating and $6.30 price target on its shares.
