If you have a tolerance for high risk options, then small cap shares could be worth considering.

This is because having a bit of exposure to this side of the market could be a good thing for a balanced portfolio given the potential returns on offer.

With that in mind, here are three small cap ASX shares that have been rated as buys:

Airtasker Ltd (ASX: ART)

The first small cap ASX share to consider is this growing online marketplace for local services. The team at Morgans is very positive on Airtasker. This is due to the broker’s belief that the company has a very attractive business model and a significant market opportunity that is in the early stages of ecommerce adoption.

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

Catapult Group International Ltd (ASX: CAT)

Another small cap to look at is Catapult. It is a global sports analytics and wearables company that provides elite sporting organisations and athletes with real time data and analytics to monitor and measure athletes. Catapult’s products are used by many of the biggest sports teams in the world. During the first half of FY 2022, the company reported a 13% increase in revenue to $37.5 million. This was driven by 29% growth in subscription revenue, which reflects Catapult’s strategic shift to a focus on high quality recurring revenue SaaS deals.

Jefferies is very positive on Catapult. It currently has a buy rating and $3.00 price target on the company’s shares.

PlaySide Studios Limited (ASX: PLY)

A final small cap share to look at is PlaySide Studios. It is one of the largest independent video game developers in Australia with a portfolio of 50+ titles that are delivered across mobile, virtual reality, augmented reality, and PC platforms. The company has also recently announced work for hire deals with games publishing giants 2K Games and Activision Blizzard.

Canaccord Genuity currently has a buy rating and $1.30 price target on its shares.

The post Here are 3 small cap shares brokers rate 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. owns and has recommended Catapult Group International Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia owns and has recommended Catapult Group International 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 Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has been outperforming its closest rival in 2022.

It has gained 9.15% year to date, whereas the Bank of Queensland Limited (ASX:BOQ) share price has increased just 1.56%.

Though, both banks have been outperforming the broader market lately. So far this year, the S&P/ASX 200 Index (ASX: XJO) has slumped 2.67% while the All Ordinaries Index (ASX: XAO) has fallen 3.25%.

So, what’s been driving one of the two smaller banks to outperform the other lately? Let’s take a look.

Why is the Bendigo Bank share price outperforming BOQ’s?

The Bendigo Bank share price has had a great start to 2022. It has outperformed all but one of the ASX’s major banks’ stocks over the year so far.

Australia’s fifth largest retail bank’s shares were bolstered earlier this year by the release of its half-year results.

Bendigo Bank reported an 8.5% increase in revenue over the first half of financial year 2022, as well as a 31.7% boost to statutory net profit.

Its cash earnings also increased 18.7% while its net interest margin compressed 14 basis points.

Potentially more notable though was Bendigo Bank’s bolstered dividend.

The bank announced it would be providing shareholders with a fully franked 26.5 cent dividend. That was 12.8% more than its previous interim dividend.

The Bendigo Bank share price gained 4.4% on the back of its half year results.

It’s worth noting that, on the release of its results, Bendigo Bank’s stock stopped trading alongside the S&P/ASX Financials Index (ASX: XFJ), as it had been previously.

Sadly, the Bank of Queensland share price hasn’t experienced such a boost – yet. Additionally, it has been mirroring the financial sector in 2022.

The Bank of Queensland is set to release its interim results on 14 April. No doubt, the market will be keeping a close eye on how it performed over the first half.

It’s also worth noting, brokers are bullish on both Bendigo Bank and the Bank of Queensland.

As The Motley Fool Australia’s Zach Bristow recently reported, 73% of analysts covering Bank of Queensland believe its shares are a buy.

Meanwhile, brokers at Credit Suisse, Morgans, and Jarden Australia all recently upgraded their outlook on Bendigo Bank shares, as my colleague Monica O’Shea reports.

The post Why has the Bendigo Bank (ASX:BEN) share price been smashing BOQ in 2022? 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 owns and has recommended Bendigo and Adelaide Bank 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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Electro Optic Systems Holdings Ltd (ASX: EOS) shares crumbled today despite no news being released by the Australian technology company.

But let’s put this into perspective. Up until today, the Electro Optic Systems share price has been skyrocketing. In fact, the shares are up by 39% in 30 days.

This mostly relates to a number of countries upping their defence spending in light of the Russia-Ukraine conflict. War is on the minds of ASX investors and space is the new defence frontier, it seems.

This has special relevance to Electro Optic Systems as it develops and produces electro-optic technologies for the aerospace market, including defence.

Australia investing $7 billion in space defence

Australia is ramping up its space defence spending, committing about $7 billion over the next 10 years to develop our space capabilities. This could spell good news for the Electro Optic Systems share price.

Yesterday, the Department of Defence announced the establishment of a Defence Space Command. It also released its Defence Space Strategy, which aims to secure Australia’s access to space for civilian and military uses.

Defence Space Commander Air Vice-Marshal Cath Roberts said integrated space capabilities incorporating all arms of the Australian Defence Force were necessary in today’s world.

In a report in The Guardian, Air Vice-Marshal Roberts said theoretically a Chinese satellite could take out Australia’s national broadband network (NBN).

Roberts said: “The activities by China and Russia, which have been fairly well documented in the public domain, scare me. I think our lack of capability at the moment against those threats … that is concerning.”

She further stated:

What we see from space gives us an unsurpassed advantage in surveillance and intelligence. It is central to how we will fight and win in the future across multi-domain operations, using advanced hypersonics, precision strike missiles and guided weapons. We are enhancing our sovereign capabilities so Australia can be self-reliant in the detection of threats and collection of information for the defence of our nation.

Electro Optic Systems derives most of its revenue from defence customers, particularly in North America. It develops and manufactures advanced fire control, surveillance, and weapon systems for approved military clients.

What’s been happening at Electro Optic Systems lately?

Last week, Electro Optic Systems announced a strategic review to maximise shareholder value. The board reckons the company is undervalued given its exciting future prospects.

As my Fool colleague Aaron reported last week, management has been seeking funding options for its wholly-owned United States subsidiary, SpaceLink. This relates to the manufacture and launch of a constellation of medium earth orbit satellites to create a “communications superhighway for the space economy”.

The company is also looking to turbocharge growth in its defence and space divisions.

Electro Optic Systems share price snapshot

The Electro Optic share price closed Thursday’s session down 11.89% to $2.89. It is down almost 45% over the past 12 months but up 21% this year to date.

The post Electro Optic (ASX:EOS) shares down 12% today but up 40% in a month appeared first on The Motley Fool Australia.

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• Could this ASX defence share be set to benefit from the Ukraine crisis?
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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns and has recommended Electro Optic Systems Holdings 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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The Medibank Private Ltd (ASX: MPL) share price has had a sluggish start to the year.

Medibank shares have fallen 11% since 4 January, the first trading day of the year. In today’s trade, the share fell 0.33% to $3.05.

Let’s take a look at what has been impacting the Medibank share price.

What’s going on with Medibank?

The private health insurance giant’s shares have had a tough start to the year after gaining 11% in 2021.

Medibank was hit with a downgrade recommendation from the team at JP Morgan earlier this year. The broker recommended the share price as a ‘sell’ and reduced the price target from $3.30 to $3.

The company also faced calls to pass more COVID savings back to members from the Private Hospital Association chief executive Michael Ross.

The Medibank share price fell 14% between market close on 7 January and 31 January alone. Elective surgery bans in Victoria and NSW amid the Omicron variant wave could have impacted the company’s shares.

On 25 February, the Medibank share price slipped 4% on the back of the company’s H1 FY22 results. Net profit after tax (NPAT) dropped 2.7% to $220.2 million. The company reported elective surgery restrictions during the COVID-19 pandemic had taken a toll.

Commenting on the elective surgery bans, CEO David Koczkar said:

We’ve always committed to return all permanent net claims savings due to COVID. And while we are pleased to be able to support our customers throughout the pandemic, now is the right time for governments to minimise future use of restrictions to elective surgery.

In late February, Medibank appointed Kathryn Fagg AO and Peter Everingham to the board as non-executive directors. Commenting on the appointment, chairman Mike Wilkins said:

As our company continues to grow, and as we continue to increase our focus on delivering for our customers, we are pleased to be able to appoint two new directors with such extensive experience and a proven track record.

These new non-executive directors will commence their roles on 31 March.

In better news for the company, Broker Credit Suisse has recently put a $3.50 price target on the Medibank share. This is nearly 15% more than the current share price.

Medibank declared a franked interim dividend of 6.1 cents per share

Medibank share price snapshot

The Medibank share price has climbed nearly 5% in the past 12 months, but it has shed 6% in the past month.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has leapt 9% in the past 52 weeks.

Medibank has a market capitalisation of about $8.4 billion based on its current share price.

The post Why has the Medibank (ASX:MPL) share price lost 11% since early January? 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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