Are you interested in small cap ASX shares? If you are, then you may want to look at the ones listed below.

Both these small cap ASX shares have been given buy ratings and are tipped for big things in the future. Here’s why they should be on your watchlist:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to watch is Adore Beauty. It operates a beauty-focused integrated content, marketing, and ecommerce platform that partners with a broad and diverse portfolio of brands and products.

This strategy has worked wonders and led to Adore Beauty’s active customers growing strongly to almost 1 million, which is underpinning strong sales growth.

Pleasingly, while this is a large number, it is still only a small portion of an Australian beauty market worth $11 billion a year at present. This gives Adore Beauty a long runway for growth over the next decade.

UBS is a fan of the company. It currently has a buy rating and $6.00 price target on its shares.

BlueBet Holdings Ltd (ASX: BBT)

Another small cap ASX share to watch carefully is this mobile-first online wagering provider.

BlueBet allows users to bet on all Australian and international racing and sports through its website and app. Thanks to the increasing popularity of mobile sports betting, its sales and customer numbers have been growing strongly in recent years.

Pleasingly, though, BlueBet is still scratching at the surface of a huge market opportunity in both Australia and the United States. And while the latter market will not be easy to crack, BlueBet is forming partnerships with industry players in an attempt to gain access.

The team at Morgans is very positive on BlueBet. The broker currently has add rating and lofty $2.60 price target on its shares.

Morgans recently commented: “We remain attracted to BBT’s opportunity to increase its Australian market share (currently just ~1.2%) and significant, long-term growth potential from its US market entry.”

The post 2 quick-growing small cap ASX shares to watch appeared first on The Motley Fool Australia.

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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. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and BlueBet Holdings 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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The Cimic Group Ltd (ASX: CIM) share price finished in the green today after the company announced it had settled a dispute.

At the close of trade, Cimic shares were swapping hands for $18.33, up 2.23%.

Cimic is a major construction, mining and services company with subsidiaries including CPB Contractors.

What was the update?

In today’s release, Cimic advised it has reached a commercial settlement on the West Gate Tunnel project in Melbourne. The tunnel is being constructed by CPB Contractors in a joint venture with John Holland.

Under the terms of the settlement, the Victorian state government will provide $1.9 billion while Transurban will contribute $2 billion to ensure the tunnel is built by late 2025.

However, the profit margin from the project will now be forgone and Cimic will see a reduction in revenue of $300 million. John Holland will also let go of $300 million of revenue.

Despite the revised revenue outlook, investors appeared to react positively to the news.

The settlement means tunnelling on the project will now be able to start early next year. Also, it resolves what the company described as a long-standing legacy issue that has taken up a lot of management’s time.

Furthermore, Cimic noted it would be able to offset the financial hit with existing provisions and additional non-recurring gains. The company expects to report a net profit after tax (NPAT) of $400-$430 million for the 2021 financial year.

In a statement signed by the Cimic board, the company said:

Cimic is pleased to have achieved this settlement, avoiding further potential legal and other costs, while being able to maintain guidance.

Settlement of West Gate also allows tunnelling to commence to the benefit of the project parties and, ultimately, the people of Victoria who will gain from this infrastructure.

Cimic share price snap shot

Cimic shares have been in the red in the past 12 months, plummeting almost 29%. Year to date, the company’s shares are down 26%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned more than 8% to investors in the past year.

The company commands a market capitalisation of roughly $5.7 billion based on the current share price.

The post Here’s why the Cimic (ASX:CIM) share price popped today appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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It’s likely a bittersweet end to the week for former owners of Oil Search Ltd (ASX: OSH) shares as the company officially becomes history.

Oil Search’s merger with Santos Ltd (ASX: STO) has now been implemented, with Santos acquiring all of Oil Search’s stock.

As of Friday’s close, the Santos share price is $6.45.

Meanwhile, the Oil Search share price remains at its final resting place of $4.04, as it has been since it stopped trading on Monday.

Let’s take a look back at Oil Search’s time on the ASX and its now completed merger with Santos.

Oil Search’s highs and lows

Oil Search was established in 1929. It first earned its place in the S&P/ASX 50 Index (ASX: XFL) in 2008.

The company’s former CEO, Peter Botten, was awarded the title of the longest serving CEO of an ASX company in 2019, after serving 25 years at the helm. Botten retired from the company in 2020.

Oil Search’s stock faced one of its worst days in March 2020, when the price of oil plummeted from underneath it.

Conversely, one of the company’s best days on the market came in 2015 when, interestingly, Woodside Petroleum Limited (ASX: WPL) made a $12 billion takeover bid.

Interested readers can find a handy booklet on the company’s history, created for its 90^th birthday, here.

However, all good things must end.

Oil Search is officially no more

On Monday, the ASX will open without Oil Search. Instead, new Santos shares issued to former Oil Search shareholders will begin trading on a normal settlement basis.

The final takeover deal saw Oil Search shareholders receiving 0.6275 Santos shares for each Oil Search security owned.

As of today, all Oil Search directors have resigned. Dr Eileen Doyle and Mr Musje Werror joined the Santos board today.

Mr Michael Utsler will also join the board after Santos’ 2022 Annual General Meeting.

And just like that, the ASX is home to one less oil and gas giant.

The post And just like that, Oil Search (ASX:OSH) shares are no more appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The Polynovo Ltd (ASX: PNV) share price has had a year to forget in 2021. To say the performance of the dermal regeneration solutions company was disappointing would be an understatement.

Shares in Polynovo are down 63% since the beginning of this year. That is a difficult pill to swallow for any investor — especially when the S&P/ASX 200 Index (ASX: XJO) has returned a gain of 9.6% during that time.

The company might have started the year off on the wrong foot, setting the pace for what would be a challenging year. Mere days after hitting an all-time high at the end of 2020, the Polynovo share price ushered in the new year with a steep decline, falling ~35% in the first two weeks of trading.

Despite achieving record sales in FY21, it seems onlookers have been wary of business disruptions caused by COVID-19.

Could 2022 be the year the Polynovo share price springs back to life?

What does Polynovo have planned for the year ahead?

This year might have been a treacherous one for Polynovo shareholders. However, the company has a number of positive developments in its sights for 2022.

One of the plans for the new year could likely be essential to stabilising the Polynovo share price. This, of course, is the replacement for managing director and CEO, Paul Brennan. The sudden exit of Brennan followed seven years of service to the company, playing an instrumental role in commercializing Polynovo’s medical technology.

According to the company’s latest update, Polynovo has received incredible interest in the vacant permanent CEO position. As such, it expects to bring on a suitable candidate in the first quarter of 2022.

Simultaneously, the company has been building out its sales teams — which are integral to growing revenue. As of 14 December, Polynovo stated it was in the final stages of recruiting a further 4 United States sales representatives, with the board approving an additional 10 hires.

Shareholders will be hoping this additional sales force will drive increased revenue for FY22. For reference, the company recorded $29.16 million in revenue for FY21.

Analyst’s take on the Polynovo share price

The team at Macquarie Group Ltd (ASX: MQG) is undeterred by the shocker of a year for Polynovo’s share price. Earlier this week, analysts at the investment bank shared their expectations for the medical polymer technology company in a note.

In a good sign for shareholders, the broker tagged the Polynovo share price with an outperform rating and a $2.85 price target. At today’s closing price, this would imply an upside of more than 100%. Yet, it’s still a far cry from the share’s 52-week high of $4.08.

It appears a number of short-sellers have the opposite opinion to Macquarie’s analysts. Based on ASIC’s short report for last week, Polynovo is still in the top 10 most shorted ASX shares with a 7.5% short interest.

The post How might the Polynovo (ASX:PNV) share price perform in 2022? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended POLYNOVO FPO. The Motley Fool Australia has recommended Macquarie Group Limited. 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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