If you’re looking at investing at the small side of the market, then the two small caps listed below could be worth considering.
While there is certainly still a lot of work to be done, they both appear to be carving out bright futures for themselves.
Here’s why they are rated highly right now:
Serko Ltd (ASX: SKO)
Serko is an online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. Zeno Travel provides AI-powered end-to-end travel itineraries, cost control and travel policy compliance to corporate customers. Whereas the latter platform allows its users to automate and streamline the expense administration function, identify out-of-policy expense claims, and prevent fraud.
Although Serko’s growth has been hit hard by the pandemic, it is starting to see transaction volumes recover. Earlier this month, Serko revealed that volumes increased to 44% of prior year volumes for the month of November. This was up from 35% of prior year volumes for the month of October.
Analysts at Morgans are positive on its prospects, particularly given its major deal with travel giant Booking.com. Its analysts have a buy rating and $6.55 price target on the company’s shares. This compares to the latest Serko share price of $4.99.
Whispir (ASX: WSP)
Whispir is a software-as-a-service communications workflow platform provider. Its high quality software platform allows companies to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.
This helps make operations more efficient and can cut down the number of service desk support calls. It counts a number of blue chips as customers such as AGL Energy Limited (ASX: AGL), Disney, and Foxtel. This underpinned strong annualised recurring revenue (ARR) growth in FY 2020, with more of the same expected in the new financial year.
Analysts at Ord Minnett currently have a $4.40 price target on the company’s shares. This compares to the current Whispir share price of $3.19.
Where to invest $1,000 right now
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More reading
- 3 leading ASX tech shares to buy
- 3 ASX tech shares that have delivered strong returns in 2020
- 2 exciting small cap ASX shares to watch
- 2 exciting small cap ASX shares to watch in 2021
- ASX 200 rises on Thursday
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 recommends Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Serko Ltd. The Motley Fool Australia has recommended Serko Ltd and Whispir 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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