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It has been a stunning day for the Nova Minerals Limited (ASX: NVA) share price according to some investment websites.

However, all may not be what it seems if you dig a little deeper.

What’s going on with the Nova Minerals share price today?

At the time of writing, the Nova Minerals share price is trading at $1.16. This is up 800% from 13 cents at Friday’s close.

While the difference in its share price may technically be accurate, something occurred between Friday’s close and Monday’s open that means the gains are not.

Last week shareholders approved a share consolidation that will see the gold explorer’s share count reduce ten times from 1,802,037,557 shares to approximately 180,203,755 shares.

This meant that the Nova Minerals share price would be $1.30 post-consolidation (13 cents x 10).

As a result, rather than gaining 800% today, Nova Minerals’ shares have actually lost approximately 11% of their value instead.

Why is the company consolidating its shares?

Management provided a number of reasons for why it is consolidating its shares. These includes greater investor interest, improved trading liquidity, and brand image.

It commented: “As a gold developer with a rapidly increasing resource base, Nova is expected to appeal to many new investors over the coming year. The primary motive for the equity consolidation is to expand the eligibility of Nova ordinary shares for institutional investors, stock exchanges, indexes and investment funds, including exchange traded funds (ETF’s). With the increasing prevalence of passive trading rather than active fundamental investing, we intend to ensure that Nova is not prohibited due to minimum share price screening.”

As for improving trading liquidity, it explained: “An increased interest from investors may improve trading liquidity of the ordinary shares.”

Finally, in respect to its brand image, the company said: “Nova is graduating from an explorer to a developer and growing its intrinsic value through its investments. An analysis of Nova’s new peer group of junior developers indicates that this restructuring of ordinary share capital is appropriate for the company at this time with such a large asset base.”

The post Is the Nova Minerals (ASX:NVA) share price really shooting 800% higher today? appeared first on The Motley Fool Australia.

More reading

• The CSL (ASX:CSL) share price reached a new 52-week high last week. What’s next?
• ‘Unstoppable’: Bitcoin will double in next 12 months, says expert
• Is the Boss Energy (ASX:BOE) share price really up 500% today?
• Vulcan (ASX:VUL) share price falls 6% despite auto giant agreement
• Flight Centre (ASX:FLT) share price crashes 11% amid omicron fears

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Shares in biotech giant CSL Limited (ASX: CSL) are in the red this morning, trading at $311 apiece. This comes after the CSL share price nudged past its 52-week highs last week.

After starting last week at $316, CSL shares closed at a high of $318 before reversing course later in the week to finish 1.11% in the red.

This watermark signals an impressive run for the Aussie biotech’s share price over the past month or so, having bounced off a low of $286 in early October.

As such, CSL is now trading around its pre-pandemic levels. Let’s take a look at what’s in store for investors moving forward

What’s next for CSL?

Analysts have been cautious on CSL’s blood plasma collection volumes for a while. This is important as the company derives a large chunk of its revenue from this route.

When competitor Haemonetics Corporation (NYSE: HAE) recently came in with lower than expected plasma collection results, it subsequently lowered its own plasma-grown guidance for the upcoming year. Given CSL is one of a handful of plasma collectors worldwide, experts use competitors’ financials to make estimates.

The team at Morgan Stanley reckon Haemonetics’ guidance downgrade might be a headwind for CSL’s earnings. Not only that, but experts are also worried about the impact that COVID-19 is still having on plasma donors showing up to clinics.

Even still, Morgan Stanley models a 32% increase for CSL’s blood plasma collection volumes this quarter, and this kind of sentiment is also shared by analysts at Macquarie. The latter is bullish about the CSL share price and values it at $338 per share.

Aside from this, CSL’s efforts in producing a multi-dose vial (MDV) version of Audenz were recognised by the US Food and Drug Administration (FDA) recently. For reference, Audenz is already approved as a single-dose therapy.

The FDA granted CSL supplemental approval for the MDV that is produced under CSL’s Seqirus business. The MDV is labelled as a cell-based influenza vaccine designed to help protect individuals aged 6 months or older in the event of an influenza pandemic.

Under the terms of its partnership with the Biomedical Advanced Research and Development Authority (BARDA), Seqirus will be ready to deliver 150 million influenza vaccine doses to the US to combat an influenza pandemic within six months.

CSL also recently announced that it had secured funding to create an incubator and wet space lab for biotech start-ups, with support from the Victorian government.

The company will team up with Melbourne University and The Walter and Eliza Hall Institute of Medical Research (WEHI) to adopt early-stage biotech companies wanting to advance their discoveries.

As CSL puts it, incubators reduce cost barriers to and other roadblocks to entry for start-ups. Incubators offer a ‘one-stop shop’ by minimising expenditure on factors that keep small companies priced out of the market.

These developments sit on the horizon for CSL, which could bode in well for its share price judging by the expert commentary and market’s reaction.

CSL share price snapshot

The CSL share price has had a difficult period these past 12 months, having gained just 3% in that time. It has rallied over 10% this year to date and has gained over 4% in the past month.

Despite this, it has landed in behind the S&P/ASX 200 Index (ASX: XJO)’s return of around 9% in that time.

The post The CSL (ASX:CSL) share price reached a new 52-week high last week. What’s next? appeared first on The Motley Fool Australia.

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The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. 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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Bitcoin (CRYPTO: BTC) plunged almost 8% on Saturday morning as news of the new Omicron variant of COVID-19 shocked the world.

That sent the cryptocurrency down more than 17% since its all-time high earlier this month.

As it recovers 4% on Monday morning, one expert reckons now is a ripe time to buy.

“Bitcoin is unstoppable, and I fully expect to see prices double over the next 12 months,” said deVere Group chief executive Nigel Green.

“This dip in cryptocurrencies – which are, of course, the inevitable future of money – will be used by savvy investors as a major buying opportunity, topping up their portfolios with the current lower entry points.”

Bitcoin is so mainstream now

The fact that Bitcoin sank so much in line with share markets on the first news of Omicron tells Green that the cryptocurrency has truly arrived.

“The discovery of a new COVID variant has rattled global stock markets as it brings in a new wave of uncertainty, which they hate,” he said.

“The crypto markets have mirrored the reaction of other financial markets. This underscores how mainstream digital assets have now become, as an increasing number of institutional investors have piled into Bitcoin this year.”

But Bitcoin’s value plummeting because of a new health crisis doesn’t make sense, as traditionally, it has been seen as a store of value – like gold.

So a revival in fortunes is inevitable.

“I think this [is] a knee-jerk reaction from the crypto market. It will move on from this relatively quickly as it did with the Delta variant in the summer,” said Green.

“Why? Partly, because now we have more of a roadmap of how to deal with variants. But importantly because amongst retail investors it is increasingly regarded as a safe haven asset, similar to gold.”

Inflation fears will return, making Bitcoin more valuable

As he said with share markets, Green reckons the cryptocurrency investors will soon move on from the Omicron threat and return to worrying about other issues.

“Investors will once again focus on heightening global inflation fears caused by lingering supply-side issues,” he said.

“As such, amid some peaks and troughs along the way as markets never move in a straight line with traders taking profit, we can expect to see the price of Bitcoin and other major cryptocurrencies continue their upwards trajectory.”

Bitcoin has historically done well in times of inflation anxiety because of its finite supply. The currency has been programmed to have no more than 21 million coins in circulation.

And this would continue to drive demand from large investors, who for so long ignored Bitcoin as a legitimate asset.

“This ‘inflation shield’ will continue to bring to the crypto market growing investment from major institutional investors, bringing with them capital, expertise and reputational pull – and further driving up prices.”

The post ‘Unstoppable’: Bitcoin will double in next 12 months, says expert appeared first on The Motley Fool Australia.

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• Here are my top risk-averse cryptocurrencies
• Why Shiba Inu Coin sank 7% today
• My first crypto buy: Solana
• The DigitalX share price has tumbled 30% in 8 days. What’s happening?
• Did the Bitcoin and Ethereum bubble burst just signal a crypto market top?

Motley Fool contributor Tony Yoo owns shares of Bitcoin. 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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The Boss Energy (ASX: BOE) share price is capturing a lot of attention this morning.

This is due to some investment websites showing the uranium exploration company’s shares up a whopping 500% despite the omicron-induced market selloff on Monday.

Is the Boss Energy share price really up by 500% today?

Unfortunately, things aren’t anywhere near as positive as it might appear for the Boss Energy share price this morning.

At the time of writing, the uranium exploration company’s shares are changing hands for $2.21.

While this is a big lift on the Boss Energy share price of 31 cents at the close of play last week, there is a technical reason for this.

Share consolidation

Last week the company held its annual general meeting. At the meeting, the company’s shareholders were invited to vote on the consolidation of its share count from 2,278,276,306 shares to 284,784,538.

This would mean that for every 8 Boss Energy shares they owned, they would be consolidated into a single share.

The overall value of these shares would stay the same, ceteris paribus, and the Boss Energy share price would theoretically increase in value by eight times to reflect this.

In the case of the company’s shares, this would mean a value of $2.48 per share (8 x 31 cents).

At the annual general meeting, shareholders voted overwhelmingly in favour of the share consolidation. A total of 99.41% of the votes cast were in favour of the resolution, leading to today’s events.

Boss Energy’s shares are actually falling

So, with the company’s shares now trading at $2.21, they certainly are not up 500% this morning.

In fact, given that 8 shares would have been valued at $2.48 based on last week’s share price, this unfortunately means they are actually down by almost 11% at the time of writing.

The post Is the Boss Energy (ASX:BOE) share price really up 500% today? appeared first on The Motley Fool Australia.

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• Why ASX uranium shares are eyeing China’s US$450 billion energy plan

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 Bruce Jackson.

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The Vulcan Energy Resources Ltd (ASX: VUL) share price is under pressure on Monday.

At the time of writing, the short sellers targeted lithium developer’s shares are down 6% to $9.63.

Why is the Vulcan share price falling?

Investors have been selling down the Vulcan share price today amid a broad market selloff driven by concerns over the omicron variant of COVID-19.

This has offset the release of an announcement by Vulcan which on a different day might have sent its shares shooting higher.

What did Vulcan announce?

This morning Vulcan announced that it has signed a binding lithium hydroxide offtake agreement with auto giant Stellantis.

Stellantis is the world’s fourth largest automaker and the name behind brands including Alfa Romeo, Chrysler, Citroen, Fiat, Jeep, Maserati, and Peugeot.

According to the release, Vulcan will supply Stellantis with a minimum of 81,000 tonnes and a maximum of 99,000 tonnes of battery grade lithium hydroxide over a five-year period from 2026.

The release notes that Stellantis’ electrification strategy, which includes ensuring a sustainable supply of lithium, will see it aim to achieve 70% low emission vehicles (LEVs) sales in Europe and 40% in the US by 2030.

To achieve this, the company plans to open a total of five battery cell manufacturing plants in Europe, including Germany, and the United States, with a total capacity of 260 gigawatt hours (GWh). Vulcan’s battery grade lithium hydroxide will be used to support this production.

As with previous deals, this remains subject to the successful start of commercial operation and full product qualification. Pricing will be based on market prices on a take-or-pay basis.

Vulcan’s Managing Director, Dr Francis Wedin, commented: “The definitive offtake agreement with Stellantis aligns with our mission to decarbonise the lithium ion battery and electric vehicle supply chain. The Vulcan Zero Carbon Lithium Project also intends to reduce the transport distance of lithium chemicals into Europe, and our location in Germany, proximal to Stellantis’ European gigafactories, is consistent with this strategy. We look forward to a long and productive relationship between Vulcan and Stellantis, as we work to achieve our shared sustainability and decarbonisation ambitions.”

The post Vulcan (ASX:VUL) share price falls 6% despite auto giant agreement appeared first on The Motley Fool Australia.

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• Vulcan Energy (ASX:VUL) share price leaps 10% on new lithium deal
• Vulcan (ASX:VUL) share price on watch following Renault agreement
• Vulcan (ASX:VUL) share price falls despite acquisition update
• Vulcan Energy (ASX:VUL) share price lifts 6% to defy wider market selloff. Here’s why
• Why Afterpay, Immutep, Pushpay, and Vulcan shares are falling

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 Bruce Jackson.

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As was widely expected, the Flight Centre Travel Group Ltd (ASX: FLT) share price has started the week deep in the red.

In morning trade, the travel agent giant’s shares are down a disappointing 11% to $15.21.

This means the Flight Centre share price has now lost almost 18% of its value over the last two trading sessions.

Why is the Flight Centre share price being smashed?

Investors have been selling down the Flight Centre share price today amid concerns over the new Omicron variant of COVID-19.

This variant of concern, as categorised by the World Health Organization, has led to countries shutting their borders to southern African nations and sparked fears of further lockdowns. This is threatening to derail the travel market recovery at a time when things were just starting to look rosy.

For example, rival Webjet Ltd (ASX: WEB), which is also tumbling lower today and down 8% at the time of writing, revealed last week that two of its three businesses were now profitable. However, that may not last long if travel markets are impacted by Omicron.

What happened on Wall Street on Friday?

It was a similar story for travel shares on Wall Street on Friday night.

Amid a broad market selloff that led to the Dow having its worst day of the year, the likes of American Airlines, Booking Holdings, Carnival Corp, and Expedia all fell heavily as investors rushed to the exits in a panic.

Though, as always, it is worth remembering that selloffs of this nature often bring about great opportunities for investors. Just look at what happened 18 months or so ago.

So, all eyes will be on Flight Centre and Webjet shares when the dust settles on this latest bout of volatility.

The post Flight Centre (ASX:FLT) share price crashes 11% amid omicron fears appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• When could Webjet (ASX:WEB) earnings return to pre-COVID levels?
• These were the worst performing ASX 200 shares last week
• What is going so wrong for the Flight Centre (ASX:FLT) share price today?
• Here’s why the Webjet (ASX:WEB) share price is getting hammered on Friday

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 recommended Flight Centre Travel Group Limited and Webjet 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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because it can be worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share after its short interest jumped to 13.3%. Concerns that the travel market recovery could be derailed by the Omicron variant sent this travel agent’s shares crashing lower last week.
• Kogan.com Ltd (ASX: KGN) has seen its short interest rise week on week again to 12%. An underwhelming update from this ecommerce company last week weighed heavily on its shares, much to the delight of short sellers.
• Redbubble Ltd (ASX: RBL) has short interest of 10.6%, which is up slightly week on week. Short sellers continue to increase their positions in this ecommerce company amid concerns it could be underperforming expectations materially.
• Zip Co Ltd (ASX: Z1P) has seen its short interest rise to 9.4%. This appears to have been driven by concerns about reports of rising fraud in the BNPL industry and increasing competition.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 9.1% of its shares held short, which is up again week on week. Short sellers have been increasing their positions after the defence and space company downgraded its earnings guidance.
• Webjet Limited (ASX: WEB) has short interest of 9%, which is down week on week. Short sellers will have been pleased to see the Webjet share price sink last week amid omicron concerns.
• Mesoblast limited (ASX: MSB) has short interest of 8.9%, which is up week on week. This biotech company’s precarious financial position is likely to be weighing on sentiment. Mesoblast is holding its annual general meeting this week and could be worth watching.
• Cooper Energy Ltd (ASX: COE) has 8.7% of its shares held short, which is up week on week again. Cooper’s underperforming Sole Gas operation appears to be behind this short interest.
• Inghams Group Ltd (ASX: ING) has 7.8% of its shares held short, which is down week on week. Short sellers have been targeting this poultry producer due to high grain costs.
• Temple & Webster Group Ltd (ASX: TPW) is back in the top ten with 7.5% of its shares held short. Short sellers don’t appear to believe this ecommerce company is performing in line with the market’s expectations.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• When could Webjet (ASX:WEB) earnings return to pre-COVID levels?
• Down 20% in a month: Is the Zip (ASX:Z1P) share price too cheap to ignore?
• These were the worst performing ASX 200 shares last week
• The Electro Optic (ASX: EOS) share price is having a shocker of a month. Is it now a buy?
• What is going so wrong for the Flight Centre (ASX:FLT) share price 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 shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited and Kogan.com ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, Temple & Webster Group Ltd, and Webjet 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 future looks bright for the Estia Health Ltd (ASX: EHE) share price, according to one expert.

Wilson Asset Management portfolio manager Tobias Yao is backing the aged care provider’s stock for the coming year.

At the time of writing, the Estia Health share price is $2.18.

Let’s take a look at what about Estia Health appeals to the fundie.

Are Estia Health shares a buy for 2022?

Yao is backing the Estia Heath share price for 2022, stating the aged care sector could be in for a golden year.

Yao told Livewire the sector has had a rough trot recently, but it’s poised to boom – and he believes Estia is a particularly “efficient operator” within it.  

As Yao pointed out, the aged care industry was recently the focus of a Royal Commission. It was also hit hard by the COVID-19 pandemic.

The Royal Commission into Aged Care Quality and Safety’s findings were handed down in March. They included recommendations of minimum qualifications and an increased award rate for aged care staff and that aged care facilities should always have a registered nurse on-site.

Additionally, in its financial year 2021 results, Estia stated all its facilities were impacted by COVID-19 over the 12 months ended 30 June. Victoria’s second wave of infections saw occupants testing positive to the virus at 11 of Estia’s facilities. Sadly, the outbreak resulted in 36 deaths among Estia’s residents.

However, the space now looks to be a hot bed for takeovers and potential government funding, says Yao.

Estia’s formerly ASX-listed aged care peer, Japara Healthcare was recently taken over. Washington H Soul Pattinson and Co Ltd (ASX: SOL) also attempted to takeover aged care operator Regis Healthcare Ltd (ASX: REG) last year.

Finally, Yao is bullish on the aged care stock following the most recent federal budget. Within it, the federal government committed to provide $3.5 billion to the sector each year for the next 5 years.

The Estia share price is already boasting a strong recent run. It has gained 23% since the start of 2021.

The post Why this fundie says Estia Health (ASX:EHE) shares are a smart pick for 2022 appeared first on The Motley Fool Australia.

More reading

• Fundies reveal their 2 top ASX shares for 2022
• Why Chalice, De Grey, Estia Health, and Fortescue shares are racing higher

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 shares of and has recommended Washington H. Soul Pattinson and Company 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 Webjet Limited (ASX: WEB) share price will be on watch this Monday morning. This comes following a broader market sell-off on the S&P/ASX 200 Index (ASX: XJO) at the end of last week.

The new Omicron coronavirus variant seems to have spooked investors across global markets.

At Friday’s closing bell, the online travel agent’s shares finished down 5.14% to $5.35 apiece. Its shares have fallen by more than 11% in the past week and could be in for another turbulent day ahead.

How has Webjet been performing?

Before ascertaining when Webjet’s earnings will return to normal levels, we take a look at its latest financials.

Last Wednesday, the company released its first-half results for FY22, highlighting a rebound across the international travel industry.

Webjet reported a cash surplus of $3.5 million per month, a significant turnaround compared to FY21. Severe lockdowns led the company to record an average monthly cash burn of $5.5 million in the previous financial year.

Total transaction volume (TTV) revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) all soared over the 6-month period. TTV stood at 63% of pre-COVID volumes in its WebBeds B2B business, with many travel markets still yet to reopen. On the other hand, revenue came to $55.4 million, more than double the $22.6 million achieved in H1 FY21. EBITDA registered a loss of $38.2 million, an improvement from the $114.4 million loss in the prior corresponding period.

Expenses were also down materially compared to pre-COVID, reflecting strategic initiatives implemented by the company.

Is a full recovery coming for Webjet’s earnings?

Much of Webjet’s earnings are dependent on how the world responds to the new Omicron variant and if lockdowns recommence.

Urgent genomic sequencing is underway to understand exactly how deadly the mutated virus is. It is said to have 30 spike proteins which is double what has been detected in the Delta variant. This means it could easily bypass current defences from existing COVID-19 vaccines.

Pharmaceutical giant Pfizer has signalled that if Omicron is resistant, it can have an updated vaccine ready in 100 days. It expects to have results within 2 weeks to understand if its current mRNA vaccine is effective.

If there is no cause for concern, Webjet’s TTV could reach pre-COVID levels by the second half of FY23. On top of that, its group portfolio will be a much leaner business, having trimmed 20% of operating costs.

Webjet share price summary

In the last 12 months, Webjet shares have gained just 5% following heavy selling by investors last week. Although this can quickly change, depending on the next few days.

Based on valuation grounds, Webjet has a market capitalisation of around $2.03 billion, with approximately 380.51 million shares on issue.

The post When could Webjet (ASX:WEB) earnings return to pre-COVID levels? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Webjet (ASX:WEB) share price is getting hammered on Friday
• Why are ASX 200 travel shares having such a shocker today?
• Brokers name 3 ASX shares to buy today
• Leading broker upgrades Webjet (ASX:WEB) shares to a buy rating
• Why Webjet, Whispir, Whitehaven Coal, and Woodside shares are pushing higher

Motley Fool contributor Aaron Teboneras 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 recommended Webjet 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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Are you looking for some small cap shares? Then have a look at the ones listed below.

Both these ASX shares have been named as buys by analysts. Here’s what they are saying about them:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap to look at is Bigtincan. It is a growing sales enablement platform provider that allows users to drive the sales process with high quality sales content anywhere, anytime, and on any device.

Demand for its offering has been growing strongly in recent years, underpinning strong recurring revenue growth in recent years. Pleasingly, this is expected to continue in FY 2022. For example, thanks to a combination of organic growth and the recent acquisition of Brainshark, management is guiding to a 124% year on year increase in annualised recurring revenue in FY 2022.

Analysts at Morgan Stanley are positive on Bigtincan. So much so, they have an overweight rating and $2.10 price target on its shares. This is almost double the current Bigtincan share price of $1.07.

Catapult Group International Ltd (ASX: CAT)

Another small cap to look at is Catapult. It is a global sports analytics 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 and organisations across the world. This includes Chelsea FC, Cricket Australia, the English Cricket Board, the New York Knicks, and the Wallabies, to name just a handful.

Although demand softened during the worst of the pandemic, it has rebounded strongly since then. This led to Catapult reporting a 13% increase in revenue to $37.5 million during the first half of FY 2022. 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. It also boasts an ultra low churn rate, which demonstrates the stickiness of its products.

Earlier this month, the team at Morgans put an add rating and $2.45 price target on Catapult’s shares. This is notably higher than the current Catapult share price of $1.52.

The post 2 exciting small cap ASX shares named as buys appeared first on The Motley Fool Australia.

More reading

• 4 small cap ASX shares to watch in 2022
• Top broker tips Catapult (ASX:CAT) share price to race 92% higher
• 3 ASX shares getting analysts very excited
• Why Aristocrat, Catapult, CBA, and Mineral Resources shares are dropping
• 3 buy-rated ASX shares with strong growth potential

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 shares of and has recommended BIGTINCAN FPO and Catapult Group International Ltd. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO. 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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