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The Telix Pharmaceuticals Ltd (ASX: TLX) share price is edging lower on Thursday morning despite the release of a positive announcement.

At the time of writing, the biopharmaceuticals company’s shares are down slightly to $5.61.

What did Telix announce?

Investors have been bidding the Telix share price higher today after it provided an update on its U.S. Food and Drug Administration new drug application (NDA) review for its Illuccix product.

Illuccix is Telix’s lead investigational product for prostate cancer imaging, which is a market management estimates to be worth US$900 million.

According to the release, the company has participated in a late-cycle review meeting with the FDA regarding the ongoing review of the NDA for the prostate cancer imaging investigational product.

Positively, during the meeting, the FDA indicated that there are no outstanding substantive review issues with Telix’s submission.

Management commentary

Telix’s Chief Executive Officer, Dr. Christian Behrenbruch, was pleased with the news.

He commented: “The late-cycle review meeting with the FDA continued a series of productive meetings with the Agency and sets the stage for the concluding phase of the NDA review process, including alignment on the final Illuccix product label.”

Dr. Behrenbruch revealed that the company is now preparing itself for a potential launch if it gains approval.

“We remain optimistic about a positive outcome and, accordingly, are working closely with our commercial partners to prepare for the U.S. launch of Telix’s lead product for prostate cancer imaging, pending approval. Delivering patient access to this important technology to support the management of prostate cancer remains a major corporate objective for Telix,” he added.

The Telix share price has been a very strong performer over the last 12 months. Despite today’s weakness, the Telix share price is now up a massive 325% since this time last year.

The post Telix (ASX:TLX) share price lower despite key FDA update appeared first on The Motley Fool Australia.

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James Mickleboro owns Telix shares. 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 4DMedical Ltd (ASX: 4DX) share price is on the move this Thursday morning.

This follows the company’s latest announcement regarding a purchase order for preclinical scanner.

At the time of writing, 4DMedical shares are trading at $1.34, up 5.51%.

What did 4DMedical announce?

In today’s statement, 4DMedical advised it has sold one Permetium preclinical scanners to the University of Michigan in the United States.

The $600,000 purchase will see the University of Michigan deploy the medical device to its Centre of Molecular Imaging. From there, it will be used to perform safe and quick quantitative imaging of lung function and vascular changes.

The Permetium preclinical scanner adopts the company’s patented XV Technology in analysing lung airway disease. Utilising the hospital’s existing systems, a series of x-ray images are taken from different angles simultaneously.

The XV Technology then uses image-processing methods to measure the motion in lung tissue, calculating ventilation at each stage of breath. The measurements are then recorded and visualised as a coloured heat-map to identify ventilation deficits.

The United States National Institutes of Health (NIH), a government agency responsible for biomedical and public health research, will fund the purchase. While this includes the preclinical scanner and its software, additional scans required will generate Software-as-a-Service (SaaS) revenue for 4DMedical.

It is expected that the preclinical scanner will be shipped to the University of Michigan in the next few months.

Commenting on the sale, 4DMedical founder and CEO Andreas Fouras said:

We are very pleased to support the University of Michigan’s activities with our XV Technology and preclinical scanner. This provides the organisation with the only commercially available device for ultra-high- resolution imaging and quantification of cardiothoracic disease models. The sale of preclinical scanners and XV Technology software to opinion-leading sites will provide further evidence of the effectiveness of our technology and help drive clinical demand for 4DMedical’s software products.

About the 4DMedical share price

Despite today’s gain, 4DMedical shares have disappointed investors, trailing at a loss close to 50% in the last 12 months.

The company’s share price is travelling within the lower end of its 52-week range of $1.12 to $2.98.

4DMedical has a market capitalisation of roughly $263 million, with more than 207 million shares outstanding.

The post 4DMedical (ASX:4DX) share price flies 5% higher on purchase order appeared first on The Motley Fool Australia.

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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 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 SEEK Limited (ASX: SEK) share price has been a strong performer this year.

In fact, the job listings company’s shares have just hit a record high of $33.29.

When the SEEK share price hit that level, it meant it was up a solid 14% since the start of the year.

Why is the SEEK share price at a record high?

Investors have been bidding the SEEK share price this year on the belief that it will be a big winner from Australia’s economic recovery.

This is thanks to its domination of the local jobs market. For example, at the end of the first half, the SEEK ANZ business had 16 million candidate profiles, 35 million monthly visits, and 160,000 active hirers.

This led to SEEK having almost a third of all placements in the region, which was five times greater than its nearest rival. So with job ads recently hitting record highs, things are looking bright for SEEK.

What else is supporting its shares?

The most recent rise in the SEEK share price appears to have been driven by a broker note out of Macquarie Group Ltd (ASX: MQG).

On Wednesday, analysts at Macquarie upgraded the company’s shares to an outperform rating with a significantly improved price target of $40.00. Based on the latest SEEK share price, this implies potential upside of 21% over the next 12 months.

Macquarie made the move due to its belief that SEEK will get a big boost on ad yields from the removal of discounts. In addition to this, the broker is forecasting Australia’s unemployment rate to fall to 4% in 2023. It expects this to underpin strong growth in ad volumes.

All in all, despite its strong rise in 2021, this broker doesn’t believe the gains are over just yet. This could make it worth considering if you’re looking for blue chip options.

The post SEEK (ASX:SEK) share price hits record high and could keep climbing appeared first on The Motley Fool Australia.

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James Mickleboro owns SEEK shares. 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 SEEK 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 Bigtincan Holdings Ltd (ASX: BTH) share price is pushing higher on Thursday morning.

At the time of writing, the sales enablement software provider’s shares are up 7% to $1.09.

Why is the Bigtincan share price pushing higher?

Investors have been buying Bigtincan’s shares this morning after it announced a small acquisition and released an update on its guidance.

In respect to the former, the company has signed a definitive agreement to acquire 100% of Vidinoti SA for ~$770,000. The consideration will be 50% cash and 50% equity.

Vidinoti is a leader in augmented and virtual reality systems based in Fribourg, Switzerland. It has developed a comprehensive suite of tools to create, deploy, and manage augmented reality content, including V-Director, V-Player and the Vidinoti SDK.

It holds patents in core areas of technology that will further advance Bigtincan’s leadership in this important technology sphere. This is expected to support the company’s mission of creating the “Buying Experience of the Future” for the world’s leading Enterprise Customers.

Bigtincan’s CEO and Co-Founder, David Keane, said: “We have been collaborating with the Vidinoti team for some time and I am delighted that we could now bring our companies together to accelerate development in this exciting space for enterprise use cases.”

Guidance update

Also giving the Bigtincan share price a boost today was management revealing that it is on course to surpass its guidance in FY 2021.

As things stand, the company has achieved $53 million in Annualised Recurring Revenue (ARR) with two weeks of the financial year remaining. This represents year on year growth of 48% and compares to its previous guidance of ARR at the top end of $49 million to $53 million.

Mr Keane commented: “Achieving $53m in ARR before the end of the FY21 period is another milestone in the development of Bigtincan This result demonstrates the ongoing progress of the Bigtincan business and arises from a combination of new orders in the USA, Europe and Asia/Pacific, together with expansion from existing customers, and shows that as the world continues to move forward and economies strengthen, Bigtincan technology is critical to the success of customer facing workers in an increasingly digital and remote economy.”

The Bigtincan share price is up 27% over the last 12 months.

The post Bigtincan (ASX:BTH) share price jumps 7% on acquisition and guidance update appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned.The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of and 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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Shares in the Alcidion Group Ltd (ASX: ALC) share price have rocketed 20% in the last 30 days, and are up 163% in the last 12 months. At yesterday’s market close, the Alcidion share price was trading at 44 cents.

Let’s look at some of the news around the tech company’s recent share market performance.

A quick company snapshot

Alcidion helps healthcare organisations “harness the power of technology” to create digitally enabled care. In other words, its platforms support medical professionals to make decisions.  Artificial intelligence and real-time visualisation are some of the capabilities of Alcidion’s technology.

It’s flagship product, Miya Precision provides clinicians with actionable insights that directly impact patient care. The company’s tech is used in 322 hospitals across the United Kingdom, Australia, New Zealand with 130,000 active users. 

Strong organic growth

In its March quarterly update the company reported strong organic growth adding $4.8 million of contracted revenue in the third quarter, of which $3 million will be recognised in FY21. 

In other highlights, there was a positive net operating cash flow of $2.8M for Q3 FY21 and contracted revenue of $24.7M expected to be recognised in FY21.

ExtraMed acquisition

The significance of the news in April that Alcidion acquired ExtraMed, a UK national health service (NHS) software provider, was not lost on investors.

The acquisition positioned Alcidion at the forefront of the UK deployment of patient flow management software, according to the company. 

Alcidion expects the acquired ExtraMed business to add approximately $2.7 million in FY22 revenue and $0.5 million earnings before interest, tax, depreciation and amortisation (EBITDA) from its existing contracts. 

As a result, the acquisition will boost Alcidion’s exposure to 27 NHS trusts.

Defence Department contract

Closer to home, the Australian Department of Defence has selected Alcidion to utilise its Miya Precision digital product to improve occupational care in the defence force.

As the preferred provider for a $21 million Department of Defence contract, Alcidion will help capture data and support clinical decision-making across the Australian Defence force.

Foolish takeaway

There has been a push in the medical industry to use technology to enable more accurate and efficient decision-making in a paperless environment. Judging by the Alcidion share price gains of the past 12 months, the company appears to be positioning itself as a global frontrunner in the field.

The post Why has the Alcidion (ASX:ALC) share price rocketed 20% in the last month? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Bitcoin (CRYPTO: BTC) is going through a rough patch as it has plunged nearly 50% since its previous high in April 2021. The flagship cryptocurrency lost $1 trillion in market cap last month, and this downward spiral has a mix of factors at play. In May, Elon Musk’s tweet about Tesla not accepting Bitcoins wiped off 10% of its value. Later that month, China’s crackdown on cryptocurrencies pushed Bitcoin below $30,000. And the IRS calling for stringent reporting on large crypto transfers added to the woes. 

So, has the tide turned against Bitcoin permanently? The situation might be rattling for new investors, but if you have traced the journey of Bitcoin, this is nothing new. According to analysts, investors who owned Bitcoin for one to six months spurred the sell-off. Nevertheless, institutional investors, big corporations, and analysts are still pretty confident of Bitcoin’s price rebound. 

Here are three main reasons to explain that the current Bitcoin crash is nothing to worry about.

Institutional investors are still stocking up on Bitcoin

Institutional investors include large public and private companies as well as fund houses that invest in Bitcoin-related products.

Jack Dorsey-led Square invested an additional $170 million in Bitcoin in February 2021. In the same month, Microstrategy spent more than $1 billion in high-yield debt to acquire additional bitcoins. In March 2021, Morgan Stanley became the first big U.S. bank to offer access to Bitcoin funds to its high net worth clients. 

Institutional investors aren’t just hooked on Bitcoin for the price appreciation. They view the currency as a credible store of value and a hedge against economic instability. The continued influx of large corporations can single-handedly push Bitcoin into the mainstream. Bloomberg claims rapid bitcoin adoption indicates a bullish growth phase. The media giant also predicted bitcoin’s price to reach $400,000 by the end of Q4 2021.

Bitcoin sees increased acceptance from countries

Besides institutional investors, many governments are also viewing cryptocurrencies in a new light. El Salvador recently declared Bitcoin as a legal tender alongside the U.S. dollar. Speculation is rife that India might also recognize Bitcoin as an asset class. Moreover, the U.S., UK, Finland, Canada, and Germany already have a positive stance over Bitcoin. These initiatives could perpetually alter the way investors and regulators view Bitcoin or other cryptocurrencies and make them mainstream. 

Bitcoin has seen a bull run after halving events

50% of Bitcoins were mined by January 2009, but the remaining 50% will be mined in more than 120 years. This is because of a unique event called ‘halving’ that Bitcoin undergoes every four years. The miners’ reward is reduced to half every four years or after mining every 210,000 blocks. Thus, the supply of Bitcoin relative to the demand declines, and the price climbs. Historically, Bitcoin has always experienced an upward spiral after a halving event. After the first halving in 2012, the price of Bitcoin surged 90x. 

The next event is due in 2024, and we can expect the cryptocurrency to see a bull run after that. However, the market has now matured since 2012, and the impact might not be too pronounced this time. Also, it could take four to six months for the price appreciation to fructify. Hence, you may buy Bitcoin before the halving event, but only if you plan to hold it over the long term. 

A word of caution

Though the current scenario suggests otherwise, the game is not over for Bitcoin. It has an inherent value, and a few tweets cannot shake it.

As for the regulatory landscape, I would say that stricter laws are indeed awaiting the cryptocurrencies. But better regulation will only enhance the credibility and prompt investors to pick Bitcoin with more conviction. 

Bitcoin price movements are a simple play of supply and demand. Unlike stocks, there aren’t any fundamentals at play. So when investors are optimistic about the future of cryptocurrency, they buy more of it, and the price climbs. On the contrary, when their belief in the currency begins to shake, they sell-off.

There is no doubt that Bitcoin has come under pressure, and it could take some time to recover due to regulatory headwinds and global macro risk. However, further declines below this point, if any, will be transient. 

Bitcoin is a highly volatile asset, and you can hold them as a part of a diversified portfolio over the long term. However, don’t be surprised to see such dramatic price fluctuations periodically because that’s very typical of cryptocurrencies. So, be sure to invest money only to the extent that you are OK to lose. Also, don’t try to time the markets because, with an asset so volatile, timing can bring a rude shock.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Bitcoin crashed nearly 50% last weekend — Should you worry? appeared first on The Motley Fool Australia.

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Namrate Sen doesn’t own any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, Square, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended MicroStrategy. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Coles Group Ltd (ASX: COL) share price will be one to watch on Thursday.

This follows the release of the supermarket giant’s strategy update this morning.

What was included in its update?

Coles provided the market with an update on its Refreshed Strategy, which was announced in 2019.

According to the release, the company is tracking well against most key strategic metrics. One of those is its sales density target. In FY 2019 its supermarkets were generating sales of $16,704 per share metre. This has now improved 6.5% to $17,789 per square metre.

Also progressing well is its cost cutting. Coles is targeting a $1 billion reduction in costs by FY 2023. Today, management advised that it is on track to deliver in excess of $550 million in cost savings by the end of FY 2021. Supporting this has been the optimisation of its stores and supply chain through artificial intelligence and the opening of innovative store formats.

Another metric that has been improving is customer satisfaction. Customer satisfaction has lifted from 88% in FY 2019 to 90% today.

And while the company’s market share is below target and has softened since FY 2019, management notes that this has been driven by COVID-19 headwinds. Having fewer neighbourhood stores and more metro and shopping centre stores impacted its market share at the height of the pandemic. However, the local shopping trend is now unwinding and management appears to be expecting market share growth to resume.

Online shopping update

Coles also gave investors an update on its online business, revealing strong growth in its customer numbers, penetration, and sales.

But it isn’t stopping there. It is continuing to invest in Click & Collect and its home delivery service. In respect to the latter, same day delivery will soon be available in over 400 stores and the company is aiming to increase its regional delivery capacity and reach.

Positively, it notes that its Ocado partnership is going to enable a step-change in ecommerce. It expects the partnership to double its online product range, expand delivery slots and locations, and support best-in-channel economics and operating costs.

All in all, management appears confident the actions it is taking with create value for shareholders in the future.

The post Coles (ASX:COL) share price on watch following strategy update appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares 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 COLESGROUP DEF SET. 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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Cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) have caught fire in the past year, with even some institutional investors giving the thumbs up.

The industry has always faced the criticism that the assets do not have any intrinsic value. The value of the currency is purely driven by supply and demand.

This is not to mention how the anonymity of ownership and transfers allow criminals to use it as a way to extort money.

The most prominent example was this year’s ransomware attack on Colonial Pipeline. With a large swathe of the United States facing a fuel shortage, the company gave the blackmailers almost US$5 million of Bitcoin to restore operations.

These downsides haven’t changed, so why are cryptocurrencies now gaining ‘mainstream’ acceptance?

The Motley Fool canvassed the view of 4 share market experts to hear what they think of digital currencies.

Crypto will go nowhere

Frazis Capital Partners portfolio manager Michael Frazis predicts cryptocurrencies will stay flat in the long run.

“About a decade ago there were all kinds of bull and bear markets around gold — it’s more or less where it traded 10 years ago,” he told The Motley Fool.

“I think something similar is in store for crypto — sideways movement.”

He acknowledged there’s now “enormous institutional investor demand” and original use cases not fulfilled by traditional assets. 

This would continue to drive demand, but there were also considerable headwinds.

“It will be hard for cryptocurrency to sustain its ~US$2 trillion peak given the entire global equity market is around US$100 trillion,” said Frazis.

“Currently, its market cap is about in line with the largest global tech company. Of course, this isn’t apples-to-apples but is a useful sense check.” 

How do you handle crypto volatility?

Medallion Financial Group managing director Michael Wayne told The Motley Fool that his knowledge of cryptocurrencies was “limited”. But as a layperson, he has many questions.

“Who controls the cryptocurrency? Who regulates the cryptocurrencies? Who regulates the market exchanges?”

Wayne also said the volatility stopped them from becoming “a reasonable means of transaction”.

“Would an average person accept your salary paid in cryptocurrency, or cryptocurrency as a form of payment for a good or service, knowing there’s a chance the purchasing power of that currency could fall 30% overnight?”

There were knowledgeable people investing in digital currencies with valid investment theories, admitted Wayne.

“I wish these people the best luck but also caution that there’s an equally as good chance it could all end in tears.”

Bitcoin is narrative-driven

Montgomery Investment Management portfolio manager Joseph Kim didn’t have an opinion either way about the investment value of cryptocurrencies.

His only concern was the old ‘intrinsic worth’ argument.

“I just see them as an expression of making fiat with a popular narrative for Bitcoin — that is, limited supply.”

Bitcoin isn’t an investment

Marcus Today director Marcus Padley, like Wayne, is put off by the volatility of digital currencies.

The worth of one Bitcoin has gone from about $40,000 at the start of the year to more than $80,000 in April, to now $52,533.

“What that tells me is that Bitcoin isn’t an investment — it’s too volatile. Certainly not for my [client] demographic, as most of my members are over the age of 60,” he told ABC News Breakfast on Tuesday.

“It’s too much of a gamble. It’s ‘unannualisable’.”

Padley also expressed concern that the public image of cryptocurrencies has shifted since the Colonial Pipeline incident.

“It’s proliferating crime. Cryptocurrency is supposed to be used for tax evasion and terrorism. They’re now calling it terrorism — ransomware.”

This tipping point could mean that regulation could be forthcoming.

“Certainly putting the whole of Texas without heating is not something you want to do if you want your cryptocurrency to be left alone,” said Padley.

“The FBI went out and recovered some of the ransom cryptocurrency, and broke this anonymous seal — so watch out.”

The post What 4 share market experts think of cryptocurrencies appeared first on The Motley Fool Australia.

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Tony Yoo owns Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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 massive rotation to value shares is done and dusted and it’s now time to return to the growth winners that carried 2020.

That’s the opinion of Nucleus Wealth head of investments Damien Klassen, who revealed his team repositioned its portfolios earlier this month.

“We have… called time on the value trade,” he said in a memo to clients. 

“The current inflation spike looks to be short term and will likely recede over the next 6 months.”

Growth is back, baby

The Nucleus team has returned to the growth shares that served investors so well during the post-crash rally last year.

“We have made some substantial changes to reduce weight to the stocks we perceive will be the losers from the new environment: banks, resources and value stocks,” said Klassen.

“The replacements are similar to the winners from 2020: quality growth — think profitable technology — and defensive.”

The strategy is a classic “barbell portfolio” with growth shares at one end and interest-rate sensitive defensive stocks at the other.

By “quality” growth shares, Klassen clarified he meant “stocks that can grow considerably above-trend” that will look appealing in a low-growth world.

“If you were looking for maximum returns, you might buy ‘junk’ growth stocks — ones with little to no earnings which often perform best in this type of environment,” he said.

“We look at our portfolios differently though. Risk is an important factor, and the junk growth stocks are far from cheap and have as much downside as they do upside.”

Inflation now is not the same as the 1970s

Inflation ran out of control in the 1970s, causing grief for the entire global economy.

But Klassen said that the fundamental forces controlling prices and wages were entirely different now.

“The rules have changed since then. We looked at technology being inherently deflationary. Net result: a financial system overengineered to prevent inflation.”

The rotation back to growth now also means investors should look at moving their money from the ASX to overseas shares.

“Australian equities have been a good source of investment performance in recent months. Now, they are facing a higher risk of reversal,” said Klassen.

“It is time to use the high prices here to switch to international equities. We are building the defensive side of the portfolio up, changing out of value winners like resources, banks and cyclical industrials. A more aggressive switch into quality/growth is ahead if we see the opportunity developing.”

The post Value shares are done, we’re back to growth: analyst appeared first on The Motley Fool Australia.

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Tony Yoo 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 well as being home to countless bank and mining shares, the Australian share market is home to a good number of promising small caps.

Two small cap shares that could be worth watching closely are listed below. Here’s what you need to know about them:

Adore Beauty Group Ltd (ASX: ABY)

The first small cap to watch is Adore Beauty. It is Australia’s leading online beauty retailer with almost 700,000 active customers.

Adore Beauty has been growing very strongly during the pandemic thanks to the shift online. And while its growth in FY 2022 is likely to be far more subdued as it cycles heightened sales from the prior period and some shoppers return to physical stores again, it has been tipped to resume its strong growth once the tough comparisons ease.

This is especially the case given the relatively low penetration of online beauty sales compared to other Western markets. This gives it a very long runway for growth over the next decade according to analysts at UBS.

In light of this, its analysts currently have a buy rating and $5.60 price target on the company’s shares.

Over The Wire Holdings Ltd (ASX: OTW)

Another small cap to watch is Over The Wire. It is a one-stop-shop for information technology and telco services, including data networks, VoIP, hosting, security, and support. It was recently named in the Financial Times Top 500 High-Growth Companies Asia-Pacific 2021. And it’s not hard to see why.

Over The Wire has been a strong performer in recent years and this has continued in FY 2021. During the first half, the company reported a 17% increase in revenue to $50.3 million and a 28% jump in EBITDA to $10.5 million.

But perhaps the biggest positive from this is that almost all of its revenue is now recurring, with recurring revenue growing 25% to $45.9 million. This gives Over The Wire a firm foundation to build on in the coming years.

Canaccord Genuity is positive on the company. It currently has a buy rating and $4.85 price target on its shares. And while its shares have just breached this level, it could be worth keeping an eye on regardless.

The post 2 stellar small cap ASX shares to watch appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Over The Wire Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Over The Wire Holdings 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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