If you’re a fan of small caps, then you’re in luck because there are a number of exciting ones with huge potential on the Australian share market.
Listed below are two small cap ASX shares that analysts rate highly. Here’s what you need to know about them:
Airtasker Ltd (ASX: ART)
The first small cap ASX share to consider is Airtasker. It is a growing online marketplace for local services which has an estimated $600 billion global total addressable market across Australia, the US, and the UK.
Management estimates that it has only captured a 0.3% slice of the Australian market at present, which clearly gives it a long runway for growth over the next decade and beyond in just the domestic market. And with the US market 10 times larger, there’s a mouth-watering opportunity for Airtasker over there.
Morgans is very positive on Airtasker. It 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 TAM in the early stages of ecommerce adoption, and a large international expansion opportunity.
The broker has an add rating and $1.27 price target on the company’s shares.
Whispir Ltd (ASX: WSP)
Another small cap share to watch is Whispir. It is a software-as-a-service communications workflow platform provider. Whispir’s platform allows businesses and governments to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.
Whispir has been growing at a strong rate over the last few years. This led to the company’s Annualised Recurring Revenue (ARR) growing 26.6% during the first half to $60 million. And while this is a large number, it is still well-short of its market opportunity. For example, management estimates that it has a TAM of US$4.7 billion in the just United States.
Ord Minnett is a fan of the company and has a buy rating and $3.45 price target on its shares.
The post 2 exciting small cap ASX shares with enormous potential appeared first on The Motley Fool Australia.
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More reading
- 3 highly rated small cap shares with heaps of potential
- 2 small-cap ASX shares we’ve bet big on: fund manager
- 4 small cap ASX shares for your watchlist
- Why Airtasker, ARB, Bubs, and Sezzle shares are pushing higher
- Why the Airtasker (ASX:ART) share price is rocketing 17% higher today
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 Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended Whispir 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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