3 exciting small cap ASX shares to watch this month

Keep an eye on these small cap ASX shares…

| More on:
a surprised investor reading about an asx share price in a newspaper

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

At the small end of the Australian share market, there are a number of companies with the potential to grow materially in the future.

Three that investors might want to get better acquainted with are listed below. Here's what you need to know about them:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to watch is Adore Beauty. It is Australia's leading online beauty retailer. It appears well-placed for growth over the next decade thanks to its leadership position and the structural shift online for beauty sales. Analysts at UBS are positive on its outlook. The broker recently put a buy rating and $5.60 price target on its shares. This compares to the latest Adore Beauty share price of $4.42.

Audinate Group Limited (ASX: AD8)

Another small cap to watch is Audinate. It is the digital audio-visual networking technologies provider behind the Dante audio over IP networking solution. This solution is used across a number of industries and the industry leader by a significant distance. This has put Audinate in a great position to benefit from increasing demand once the pandemic passes. In fact, you only need to look at its third quarter update to see this. For the three months ended 31 March, pent up demand led to Audinate reporting its highest ever quarterly revenue. Morgan Stanley currently has an overweight rating and $10.00 price target. This compares to the latest Audinate share price of $7.79.

Pointerra Ltd (ASX: 3DP)

A final small cap to watch is Pointerra. It provides businesses with a powerful cloud-based solution for managing, visualising, analysing, and sharing massive 3D point clouds and datasets. The company's clever platform can effortlessly extract vital information from data that would otherwise take many hours to do. Management believes that it has an enormous $500 billion market opportunity globally.

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 AUDINATEGL FPO and Pointerra Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Small Cap Shares

Three analysts look at tech options on a wall screen
Technology Shares

Why did this small-cap ASX tech stock just explode 39%?

Investors are piling into the ASX tech stock on Wednesday. But why?

Read more »

Siblings jumping on a trampoline.
Broker Notes

3 ASX small-cap stocks to buy for 2025: brokers

Here are 3 ASX small-cap shares capturing the attention of professional brokers this week.

Read more »

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Small Cap Shares

ASX small-cap stock halted amid global semiconductor deal

Investors are awaiting details of a capital raise.

Read more »

A young man sitting at an outside table uses a card to pay for his online shopping.
Small Cap Shares

Why I think this ASX small-cap share is a bargain at $1.20

This retail stock could be a bargain buy right now.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Small Cap Shares

These small cap ASX shares could rise 20% to 50%

These shares could be destined to deliver big returns over the next 12 months according to brokers.

Read more »

three children wearing superhero costumes, complete with masks, pose with hands on hips wearing capes and sneakers on a running track.
Small Cap Shares

3 ASX small-cap shares to buy now: brokers

The ASX Small Ordinaries Index has lifted 6.5% over the past six months alone.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Small Cap Shares

This ASX small cap stock just rocketed 40%! Here's why

Let's see what is getting investors excited this morning.

Read more »

Kid putting a coin in a piggy bank.
Small Cap Shares

Down 72% form its highs, why this ASX small-cap stock is now 'a bargain'

Everyone likes a bargain.

Read more »