If you’re a fan of small caps, then you’re in luck. Because there are a number of exciting ones on the Australian share market that have been tipped as buys.

Here are two small cap ASX shares that analysts rate highly:

Airtasker Ltd (ASX: ART)

The first small cap ASX share to consider is this growing online marketplace for local services.

Analysts at Morgans are very positive on Airtasker. This is due to their belief that the company has a very attractive business model and a significant market opportunity.

Morgans highlights that the company’s product works for both sides of the marketplace, has attractive unit dynamics with healthy gross and contribution margins, an enormous total addressable market (TAM) in the early stages of ecommerce adoption, and a large international expansion opportunity. The latter provides the company with a long growth runway in the future.

The broker has an add rating and $1.27 price target on the company’s shares.

Nitro Software Ltd (ASX: NTO)

Another small cap that is rated highly is Nitro. It is a fast-growing global document productivity software company aiming to accelerate digital transformation in a world that demands the ability to work from anywhere, anytime, on any device.

It is doing this with its Nitro Productivity Platform, which offers comprehensive business solutions including powerful PDF productivity, eSigning, and industry-leading analytics. At the last count, Nitro had over 2.8 million licensed users and 12,000+ business customers in 155 countries. This includes over 68% of the Fortune 500 and three of the Fortune 10.

This has underpinned strong annualised recurring revenue (ARR) growth in recent years and has continued in FY 2021. For example, during the third quarter, Nitro reported a 50% increase in its ARR. This puts it on course to achieve its ARR guidance of US$39 million to US$42 million in FY 2021. This is still only a fraction of its estimated total addressable market of $28 billion.

Bell Potter is very positive on Nitro. It currently has a buy rating and $4.50 price target on its shares.

The post 2 exciting small cap shares named as buys 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 Airtasker Limited. The Motley Fool Australia has recommended Nitro Software 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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ASX 200 tech shares are in the green today, following in the footsteps of their counterparts in the United States.

The S&P/ASX All Technology Index (ASX: XTX) gained 1.66% today to 2,840.70 points at market close. This was 1% more than the benchmark S&P/ASX 200 Index (ASX: XJO), which jumped 0.66%.

Let’s take a look at why ASX technology shares performed well today.

What is happening to ASX tech shares?

The All Technology Index recovered after a tough start to the year. The index fell 6.39% between market close on 31 December and market close on 11 January before clawing back some of the losses today.

One clue to the trend may be the performance of US markets. The NASDAQ-100 Technology Sector Index (NASDAQ: NDXT) gained 1.73% today to 9,146.78 points.

Apple Inc (NASDAQ: AAPL) gained 1.68%, while Amazon (NASDAQ: AMZN) jumped 2.4%. US tech shares rebounded after a sell-off in the new year due to rising interest rate fears, CNBC reported.

The Australian technology sector often follows the Nasdaq index. Afterpay Ltd (ASX: APT) was one of the top ASX 200 tech shares on Wednesday, gaining 4.75%.

The company’s shares surged after the Bank of Spain approved Block’s takeover of the company.

Other ASX 200 and All Technology Index shares in the green today included Appen Ltd (ASX: APX), up 5.52%, and Megaport (ASX: MP1), which hiked 3.43%.

Altium Limited (ASX:ALU) also climbed 1.69%, Novonix (ASX:NVX) jumped 0.95%, and TechnologyOne (ASX: TNE) gained 1.05%. None of these companies released any news to the market today.

Foolish takeaway

The All Technology Index climbed 3.60% the past year, underperforming the broader ASX 200 index by roughly 8 percentage points.

In the past month, the All Technology index is down 6.45% and 6.78% lower in the last week.

Since market close on 31 December, it has fallen 4.83%.

The post Here’s why ASX 200 tech shares (ASX:XTX) outperformed today appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• The best and worst ASX sectors of 2021. Why this year could be different
• Here are the 5 best performing ASX ETFs of 2021
• Why Afterpay, Appen, Liontown, and Nickel Mines shares are surging higher

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Altium, and Appen Ltd. The Motley Fool Australia owns and has recommended Afterpay Limited and Appen Ltd. The Motley Fool Australia has recommended Amazon and Apple. 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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With growth shares falling out of favour with investors this month, readers may be wondering what options there are out there for value investors.

With that in mind, listed below are two top ASX shares which could be candidates for the value-focused investor. They are as follows:

Adairs Ltd (ASX: ADH)

The first ASX share to look at is this leading homewares and furniture retailer. It has a presence online and offline with its core Adairs brand and its online-only Mocka brand. It has also signed an agreement to acquire Focus on Furniture for $80 million, giving it exposure to the $8.3 billion bulky furniture category.

The team at Morgans is very positive on Adairs and currently has an add rating and $4.80 price target on its shares. Its analysts are forecasting an earnings per share (EPS) compound annual growth rate of 21% between FY 2020 and FY 2024.

Despite this, the Adairs share price is trading at just 10.5x FY 2022 earnings based on Morgans’ forecast of 36 cents EPS. Furthermore, the broker estimates that its shares offer a very generous fully franked 6% dividend yield.

Inghams Group Ltd (ASX: ING)

Another ASX share for value investors to consider is this leading poultry producer. With the Inghams share price down 21% from its 52-week high, the team at Goldman Sachs believe it has created a buying opportunity. This is even after factoring in its disappointing performance in FY 2022 due to COVID headwinds.

This morning the broker retained its buy rating with a trimmed price target of $3.90. Goldman estimates that Ingham’s shares are trading at 13.5x FY 2022 earnings and offering investors a fully franked ~5% yield.

It feels this makes it great value, particularly given its strong balance sheet, relatively defensive revenue stream, and the duoploy industry structure.

The post 2 cheap ASX shares for value investors appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 ASX dividend shares to buy today
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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 ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. 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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ASX financials are front and centre again this week, as rising yields on US Treasuries and a rotation out of risk assets play havoc on international equity markets.

Investors are flocking to defensive classes – such as financials –  in the wake of shifting interest rates talk emerging from central banks in Australia, the US, and Europe.

For instance, the iShares U.S. Financials ETF (NASDAQ: IYF) saw inflows of $126.3 million in the final week of December. That’s a 5% gain on the same time in 2020.

Meanwhile, the Financial Select Sector SPDR Fund (NYSEARCA: XLF) saw the highest volume of inflows last week, reaching $2.34 billion.

In comparison, the SPDR S&P 500 ETF Trust (ASX: SPY) – which is currently 27% weighted towards the rates sensitive tech sector – saw net outflows of $6,523.72 million in the first week of 2022 alone.

Why then, is the Bank of Queensland Ltd (ASX: BOQ) share price struggling of late? It is currently in a 40% drawdown, meaning that’s how far it’s trading off its previous record high.

Let’s take a look at the situation.

What’s up with the BOQ share price?

Over a much wider time frame, say the last 5 years, the downward pressure on the BOQ share price has been more than evident.

The company’s shares have trended downwards from a high of $12.47 back in 2018 and have shown little sign of recovery since.

The COVID-19 selloff in March 2020 was unkind to BOQ shares. Only in October 2021 did the company return to its pre-pandemic levels.

However, whilst it’s prudent to consider a stock’s history, today’s forward estimates on the BOQ share price are equally as important. As legendary fund manager Peter Lynch correctly states, the market prices shares on a combination of past earnings history and future earnings expectations.

Fast forward to the present and the commentary on BOQ is centred around its ability to absorb sector-wide pressures to net interest margins (NIMs) in FY22.

Goldman Sachs considers BOQ’s deposit book is more rate-sensitive while Jefferies is upbeat on the bank’s cost-budgeting measures targeted for 2022. Both are positive inflection points, according to the brokers.

The bank is set to embark on a number of new year’s resolutions as well, following a flurry of complaints at its AGM last year about the old technology underpinning its operations.

As such, the bank has committed to its new “digital transformation strategy”, launched last year.

So, is it a buy in 2022?

When examining the list of brokers provided by Bloomberg Intelligence, the majority of coverage on BOQ is bullish for the remainder of 2022.

Citing the bank’s net interest margin, Jefferies bakes in a 9 basis point contraction in NIM from the previous year in its forward estimates on BOQ.

It values the bank at a bullish $8.50 per share, alongside the team at Citi who rate it a buy on a $10 per share price target.

Goldman Sachs has BOQ as a buy as does Macquarie, each valuing the company at $9.67 and $10 per share respectively.

Meanwhile, JP Morgan favours BOQ the most out of its ASX financial shares. It values the company at $9.80 a share. It also forecasts cash earnings of $507 million for the bank in FY22.

When comparing the BOQ share price with Commonwealth Bank of Australia Ltd (ASX: CBA), Australia’s largest bank by market cap, most brokers unquestionably prefer BOQ shares right now.

With this in mind, it’s not surprising to see more than 70% of analysts covering BOQ advocate the share as a buy, as opposed to just 1 broker urging clients to sell.

As such, going by these predictions, BOQ could be a buy in 2022. However, with equity markets, and risk assets in general, poised for a year of lumpy performance, only time, market mechanics, company fundamentals, and Captain Hindsight will tell.

The post 40% drawdown: The Bank of Queensland (ASX:BOQ) share price is struggling. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• Is the Bank of Queensland (ASX:BOQ) share price a better buy than CBA? Here’s what top brokers say
• Bank of Queensland (ASX:BOQ) hoses down Humm (ASX:HUM) takeover rumours
• Is it a buy? Top brokers’ opinion on the Bank of Queensland (ASX:BOQ) share price
• Why is December being so kind to Bank of Queensland (ASX:BOQ) shares?
• Own Bank of Queensland (ASX:BOQ) shares? Here are the key dates to watch in 2022

The author has no positions 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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