Looking for some small cap shares to add to your watchlist? Then have a look at the three listed below.

Here’s why they could be worth getting better acquainted with:

Ai-Media Technologies Ltd (ASX: AIM)

The first small cap to watch is Ai-Media Technologies. It is a global media access provider with operations across the ANZ, North American, EMEA and Asia markets. The company’s cloud-based technology platform provides live and recorded captioning, transcription, subtitles, translation and speech analytics. Bell Potter is positive on the company. It currently has a buy rating and $1.50 price target Ai-Media Technologies’ shares.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company. It provides a unified platform to streamline processes for employee administration, recruitment, on-boarding, learning, performance, remuneration, compliance training and payroll. ELMO has been a strong performer in recent years and looks well-placed in the future. This is due to acquisitions and favourable industry tailwinds. Morgan Stanley has an outperform rating and lofty $7.80 price target on its shares.

Serko Ltd (ASX: SKO)

Serko could be a small cap share to watch. It is an online travel booking and expense management provider with a number of quality solutions which have significant market opportunities. Another positive is that it recently signed a deal with travel booking giant Booking.com. This has the potential to be a game-changer over the coming years. Ord Minnett recently put a buy rating and $8.10 price target on Serko’s shares.

The post 3 small cap ASX shares to watch in January 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. owns and has recommended Elmo Software and Serko Ltd. The Motley Fool Australia owns and has recommended Elmo Software. The Motley Fool Australia has recommended Serko 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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There are a large number of ASX shares to choose from on the Australian share market.

Three that come highly rated are listed below. Here’s why these ASX shares are being tipped as buys:

Healius Ltd (ASX: HLS)

The first ASX share to look at is Healius. It is one of Australia’s largest pathology and diagnostic imaging providers offering services. Thanks largely to elevated demand for COVID-19 testing, during the first quarter, Healius reported a 43.7% increase in group quarterly revenue over the prior corresponding period to $689.9 million. And with testing demand remaining strong because of the Omicron variant, the company looks well placed to deliver a very strong result in FY 2022.

This went down well with the team at Macquarie. The broker has an outperform rating and $5.65 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX share to look at is Life360. It operates in the digital consumer subscription services market and has a focus on products and services for digitally native families, where all members of the household are connected by smartphones. A whopping 33.8 million monthly active users are using its app, which is underpinning stellar recurring revenue growth. The company also has significant opportunities to monetise its user base further in the future.

Bell Potter is bullish on Life360. It has a buy rating and $15.25 price target on the company’s shares.

SEEK Limited (ASX: SEK)

This job listings company could be another ASX share to buy. Although SEEK was hit hard initially by the pandemic it has bounced back very strongly. SEEK reported a 1% increase in revenue to $1,591 million and a 58% jump in net profit after tax (excluding significant items) to $141 million in FY 2021. Pleasingly, it looks set to build on this in the coming years as the Australian economy recovers from COVID-19.

Credit Suisse is a fan and has an outperform rating and $39.50 price target on its shares.

The post 3 fantastic ASX shares to buy this month appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Life360, Inc. and SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has recommended SEEK 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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There aren’t too many ASX shares around that have major growth plans over the coming years. But the ones that do could be attractive potential opportunities.

Businesses that are smaller in size compared to a blue chip can have much more growth potential because they’re starting off at a much smaller point.

These two ASX shares could be very good options:

City Chic Collective Ltd (ASX: CCX)

City Chic is a leading ASX retail share that specialises in selling clothes, footwear and accessories to plus-size women.

It has a variety of brands for different products and markets including City Chic, Avenue, City Chic, Evans, Hips & Curves and Fox & Royal.

Since 22 November 2021, the City Chic share price has actually dropped by 15%, presenting a better value entry point for investors.

Plenty of investors like this ASX share at the moment, including the brokers UBS and Morgan Stanley which both have share price targets that are around 20% higher than where the Webjet share price is today.

A large part of the company’s earnings comes from online sources. In FY21, online sales made up 73% of its total revenue. Its online sales grew by 49.3% last financial year.

The company is working on a number of initiatives including expanding and executing on marketplace partnerships in all regions, increasing market share in the US, integrating its European Navabi acquisition and introducing its wider product range to the European market, and reviewing more acquisition opportunities.

The latest City Chic share price is valued at 28x FY23’s estimated earnings according to UBS.

Webjet Limited (ASX: WEB)

Webjet is a large travel ASX share that offers services for the public and also business to business services (WebBeds).

The company sees significant growth opportunities in all of its businesses as global travel markets start to reopen.

WebBeds is on track to be 20% more cost efficient when at scale. In November, Webjet said that WebBeds had been profitable since July thanks to domestic North American and European markets.

The ASX share sees increasing market opportunities for WebBeds with channel expansion, targeting previously untapped domestic markets and increasing market share in North America.

When WebBeds gets back to scale, it’s targeting an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 62.5%. This translates to EBITDA being 5% of total transaction value (TTV).

Management thinks the Webjet online travel agency (OTA) segment has market share growth potential thanks to consumer preferences shifting to online as well as investing in international opportunities.

Whilst the Omicron COVID-19 variant may have changed the situation a bit, Webjet noted that in November 2021 its TTV was tracking at 63% of pre-COVID times and bookings were tracking at 69% of pre-COVID levels, with many larger markets yet to open.

Webjet thinks that the business to business TTV market value is now more than A$70 billion and it’s targeting a market share of 14% of this (up from 4% in FY19). In dollar terms, it is targeting $10 billion of TTV.

This ASX share is a buy according to UBS, which has a price target of $6.85 on the business. That implies a potential upside of more than 30% over this year.

The post Potential buys: 2 excellent ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 recommended Webjet 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 Qantas Airways Limited (ASX: QAN) share price failed to take off in 2021. It was no secret that the company struggled with most of its operations halted due to COVID-19.

Since the beginning of the year, the airline operator’s shares moved marginally higher, up 2%. In comparison, the S&P/ASX 200 Index (ASX: XJO) gained roughly 13.5% over the same period.

For the final day of 2021, Qantas shares closed flat at $4.98 apiece. It’s worth noting that in early November, its share price touched a 52-week high of $5.97 before treading lower.

What happened with the Qantas share price?

The volatility in the Qantas share price in 2021 has been driven by uncertainty relating to the recovery of the travel market.

Earlier this year, Australia effectively managed to control the spread of COVID-19. This led to the company taking advantage of the strong interest in consumers wanting to travel domestically.

During March and April, investors scrambled to buy Qantas shares which led to a sharp and sudden ascent.

However, things turned sour when outbreaks of COVID-19 began to prop up across the country. This caused Qantas to forcefully ground its domestic fleet as several states went into hard lockdowns.

The turmoil drove investors to the exits, sending the airline’s shares to a 52-week low of $4.20 in August.

Fast-forward to November, the outlook for the travel industry became rosy again as COVID-19 had been on a steady decline. Furthermore, the Australian government’s re-opening of international travel excited investors.

The company brought back several planes from deep storage to meet the expected surge in demand for travel.

But yet again, a new variant of COVID-19, Omicron caused widespread panic across the globe. As such, several counties have gone back into lockdown, and Australia has re-reintroduced restrictions because of the record number of cases.

Is this a buying opportunity?

The good news for investors is that a number of brokers believe that the Qantas share price is attractively valued.

Multinational investment bank, Citi cut its price target by 1.2% to $5.86. Although this is a reduction, it implies an upside of almost 18% over the next 12 months.

In addition, JPMorgan also slashed its outlook by 3.1% to $6.30 a pop. This represents a potential upside of 26% from where it trades today.

Following suit, Swiss investment firm, UBS lowered its assessment on Qantas shares by 3.1% to $6.20. Its analysts clearly believe that there is still significant value in the airline and that a recovery is inevitable.

The post How did the Qantas (ASX:QAN) share price perform in 2021? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras owns Qantas Airways Limited. 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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