If you have a high tolerance for risk and want to add some small-cap ASX shares to your balanced portfolio, then it could be worth considering the one in this article.
That’s the view of the team at Morgans, which has just put a buy rating on the growing company’s shares.
Which small-cap ASX share?
The small cap that Morgans is tipping as a buy is WRKR Ltd (ASX: WRK).
Wrkr is an Australian financial technology company that provides compliance and payment software solutions to create efficiencies for superfunds, payroll service providers, and both large and small Australian employers.
The small-cap ASX share highlights that it has three core offerings.
The first is Wrkr PLATFORM, which is a modern cloud-based compliance platform for handling messaging with the ATO and orchestrating payment processing for worker pay and super contributions for Fund Administrators.
It also offers Wrkr PAY, which is a superannuation gateway and clearinghouse and payment handling solution for processing of employee pay and super contributions for payrolls and superfunds. This includes Wrkr SMSF Hub, which provides ATO messaging and contributions compliance for SMSFs.
Lastly, it offers Wrkr READY, which is a white-label employee onboarding solution to manage the compliant onboarding of full-time and casual workers.
What did the broker say?
Morgans believes that this small-cap ASX share is on the brink of turning a profit following a critical transition year.
And with a strong balance sheet and tailwinds in its sails, the broker believes it is positioned for sustainable growth. It said:
Wrkr (WRK) is an Australian regtech company that helps employers simplify workforce compliance across the hire to retire lifecycle. FY26 is a critical transition year for WRK, with the onboarding of large client wins setting it up to turn a profit in FY27. With a strong balance sheet (A$16m of cash at 1H26) and playing in markets supported by regulatory tailwinds, we think WRK is well positioned to deliver sustainable growth. We initiate coverage on WRK with a BUY recommendation, with the stock trading at a ~25% discount to our blended valuation of A$0.14 per share.
As mentioned above, Morgans has initiated coverage on the small-cap ASX share with a buy rating and 14 cents price target.
Based on its current share price, this implies potential upside of 25% for investors over the next 12 months.
The post Morgans just slapped a buy rating on this small-cap ASX share appeared first on The Motley Fool Australia.
Should you invest $1,000 in WRKR Ltd right now?
Before you buy WRKR Ltd shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and WRKR Ltd wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
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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 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 Scott Phillips.