The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.
Two that investors might want to get better acquainted with are listed below. Here’s why they should be on your watchlist:
Hipages Group Holdings Ltd (ASX: HPG)
The first small cap ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. While its first half performance was a little on the disappointing side due to the negative impact of lockdowns on tradie subscriptions, management expects a swift rebound now restrictions are easing. In addition, its performance looks set to be boosted by a recent acquisition in New Zealand and partnership with leading property management platform Bricks + Agent.
Goldman Sachs also remains confident that a post-lockdown rebound is coming. After which, the broker believes Hipages is well-placed for strong long term growth as it grows its ecosystem into a huge addressable market. Goldman has a buy rating and $3.60 price target on its shares.
Whispir Ltd (ASX: WSP)
Another small cap ASX share to watch is Whispir. It is a global scale SaaS company that provides a communications workflow platform that automates interactions between organisations and people. Its products have been in-demand with businesses across the globe, which has underpinned strong recurring revenue growth in recent years. Pleasingly, this continued in the first half of FY 2022, with Whispir reporting annualised recurring revenue (ARR) of $60 million. This was up from $47.4 million or 26.6% from a year earlier but is still only scratching at the surface of its massive addressable market.
Shaw and Partners is positive on Whispir and was impressed with its first half performance. Its analysts currently have a buy rating and $4.85 price target on its shares.
The post 2 exciting small cap ASX shares for your watchlist appeared first on The Motley Fool Australia.
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More reading
- 2 buy-rated small cap ASX shares analysts believe have 60%+ upside
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- Down 35% in a month, why Motley Fool analyst Benny Ou says this ASX tech share is now a bargain buy
- High risk, high reward: Analysts tip 2 small cap ASX shares for big things
- Hipages (ASX:HPG) share price plunges 6% on half-year loss
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 Alcidion Group Ltd, BIGTINCAN FPO, and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. The Motley Fool Australia has recommended Alcidion Group Ltd, BIGTINCAN FPO, and 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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