2 highly rated small cap ASX shares to watch

Here are a couple of highly rated options at the small side of the market…

| More on:
woman talking on the phone and giving financial advice whilst analysing the stock market on the computer with a pen

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

If you have a penchant for investing in small cap shares, then you might want to take a look at the two listed below.

Here's why these are highly rated by analysts right now:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a growing provider of enterprise mobility software to sales and service organisations. The company notes that its mobile, AI-powered sales enablement automation platform features the industry's premier user experience that empowers sales reps to more effectively engage with customers and prospects and encourages team-wide adoption.

Bigtincan has been a positive performer in FY 2021. Management recently advised that it has achieved the top end of its annualised recurring revenue (ARR) guidance range of $49 million to $53 million this year with a few weeks of the financial year remaining. This will mean an increase of at least 48% on FY 2020's ARR of $35.8 million.

Morgan Stanley is positive on the company. It currently has an overweight rating and $1.50 price target on its shares.

Serko Ltd (ASX: SKO)

Serko is a travel technology company that offers a number of solutions to businesses. These include AI-powered end-to-end travel itineraries, cost control, travel policy compliance solutions, and fraud prevention. Combined, its technology makes the process of booking, managing and reconciling business travel and expenses, a better experience for everyone involved.

While COVID-19 has unsurprisingly hit the company hard and led to a significant reduction in demand, it has been recovering in recent months and looks well-placed to build on this as vaccines roll out and travelling increases. In addition to this, the company signed a game-changing deal with travel giant Booking.com last year. It is expected to have a material impact on its revenue in FY 2022.

Earlier this month Macquarie put an outperform rating and NZ$8.31 (A$7.71) price target on its shares.

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 Serko Ltd. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended Serko Ltd. 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

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
Small Cap Shares

Why I think this ASX small-cap stock is a bargain at $3.36

This business could continue revving higher…

Read more »

A young boy wearing a hat, sunnies and striped singlet looks fierce and flexes his arm in victory.
Small Cap Shares

Why this ASX small-cap stock has significant potential

This business is delivering significant growth.

Read more »

Five young boys wearing small caps sit on a bench together watching a baseball game.
Small Cap Shares

5 ASX small-cap shares that screamed 114% to 362% higher in FY25

Here are some examples of ASX small-cap shares that experienced outstanding price growth in FY25.

Read more »

Three young people in business attire sit around a desk and discuss.
Small Cap Shares

Tiny tech: 3 ASX small-cap shares with new ratings

Toby Grimm of Baker Young and Peter Day of Sequoia Wealth Management share their new ratings.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Small Cap Shares

Hidden gems: Experts name 3 ASX small-cap shares to buy now

One of these ASX small-cap shares has risen by a staggering 1,687% over the past 12 months.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Small Cap Shares

These ASX small cap shares could be tomorrow's blue chips

Analysts think these small caps could be great picks right now.

Read more »

A elder man and woman lean over their balcony with a cuppa, indicating share rpice movement for ASX retirement shares
Small Cap Shares

Why I think this ASX small-cap stock is a bargain at 58 cents

This stock looks like a great buy, in my opinion.

Read more »

A young boy wearing a hat, sunnies and striped singlet looks fierce and flexes his arm in victory.
Small Cap Shares

Forget CBA shares. What about small-cap ASX financial shares?

Analysts discuss 2 small-cap ASX financial shares that are up by more than 40% in 2025.

Read more »