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.
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*Returns as of January 12th 2022
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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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