2 growing small cap ASX shares to watch

These ASX small cap shares could be ones to watch…

| More on:
share price gaining

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

sdf

Investing in the small side of the share market carries significantly more risk than other areas.

However, if your risk tolerance allows for it, having a bit of exposure to this side of the market could be a good thing for a balanced portfolio.

With that in mind, here are two small cap ASX shares that could be worth watching closely:

BlueBet Holdings Ltd (ASX: BBT)

The first small cap share to watch is BlueBet. It is a mobile-first online wagering provider. BlueBet allows users to bet on all Australian and international racing and sports through its website and app.

The company has been growing very strongly over the last 12 months thanks to the increasing popularity of mobile sports betting.

For example, in FY 2021, the company outperformed its prospectus forecasts with an 83.3% increase in turnover to $344.7 million and a 48.4% lift in underlying EBITDA to $7.5 million. This was underpinned by a 45.7% increase in active customers to 32,472.

Positively, management is confident that this trend can continue and believes it is well positioned to substantially grow its share of the market in Australia and expand into the massive US market.

Morgans is very positive on the company's long term growth prospects. As a result, it recently put an add rating and $2.57 price target on its shares.

Mach7 Technologies Ltd (ASX: M7T)

Another small cap ASX share to watch is Mach7. It is a medical imaging data management solutions provider that allows users to create a clear and complete view of the patient. Users then use this to help them inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes.

Demand for this type of software continues to grow thanks to industry tailwinds such as telehealth.

This was evident in FY 2021, with the company reporting a 95% increase in sales orders (total contract value) to $25.6 million. This is still well short of its estimated total addressable market of US$2.75 billion.

Morgans is also a fan of the company and believes it is well-placed to deliver strong revenue growth in the coming years. The broker currently has an add rating and $1.56 price target on the company's 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 MACH7 FPO. The Motley Fool Australia has recommended BlueBet Holdings Ltd and MACH7 FPO. 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 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 »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Small Cap Shares

Bell Potter says this small cap ASX stock can rocket 100%

The broker expects big returns from this small cap. Let's find out why it is bullish.

Read more »

A young man working from home sits at his home office desk holding a cup of tea and looking out the window
Small Cap Shares

Morgans says these small cap ASX shares can rise 40% to 100%

Big returns could be coming from these small caps according to the broker.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Small Cap Shares

These small cap ASX shares could rise 50% to 65%

The team at Bell Potter is bullish on these names. Let's find out why.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Small Cap Shares

Want to beat the stock market? I'd focus on buying these ASX shares

I think these ASX shares offer plenty of promise.

Read more »

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

Guess which small cap ASX stock is rocketing 28% on $100m deal

It has been a very good start to the day for owners of this stock.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Small Cap Shares

Bell Potter says this small cap ASX stock can rocket 40%+

Let's see what Bell Potter is saying about this small cap.

Read more »

A person sitting at a desk smiling and looking at a computer.
Share Market News

2 ASX small caps with serious market-beating potential

Here's two compelling ideas to add to your watchlist.

Read more »