2 growing small cap ASX shares to watch

Here are two growing small cap ASX shares…

| More on:
Contented looking man leans back in his chair at his desk and smiles.

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're a fan of small cap ASX shares, then you may want to add the two shares listed below to your watch list.

Here's what you need to know about these growing small cap ASX shares:

PlaySide Studios Limited (ASX: PLY)

The first small cap to watch is PlaySide Studios. It is one of the largest independent video game developers in Australia. At present, the company's portfolio comprises 50+ titles that are delivered across four platforms – mobile, virtual reality, augmented reality, and PC. Among these titles are games developed in collaboration with studios such as Disney, Pixar, Warner Bros, and Nickelodeon. PlaySide has also recently announced promising deals with games publishing giant 2K Games and gaming influencer company One True King that could be a big boost to its growth in the coming years. Management estimates that it has a US$159 billion global addressable market to grow into over the next decade.

Canaccord Genuity currently has a buy rating and $1.00 price target on its shares.

Serko Ltd (ASX: SKO)

Another small cap to watch is Serko. It is the online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. The Zeno Travel platform provides artificial intelligence-powered end-to-end travel itineraries, cost control and travel policy compliance to corporate customers. Whereas the Zeno Expense platform allows users to automate and streamline the expense administration function, identify out-of-policy expense claims, and prevent fraud. While demand for its offering has suffered during the pandemic, demand has been rebounding. For example, Serko reported an 81% jump in operating revenue to NZ$9.2 million during the first half of FY 2022. The good news is that the second half should be boosted by the Booking.com deal, which has seen 300,000 business customers migrated to the Zeno platform.

Ord Minnett has a buy rating and $8.10 price target on Serko'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 and has recommended Serko Ltd. 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 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 »

Woman in business suit holds both hands out with a question mark above each hand.
Small Cap Shares

Building a market beating portfolio: ASX 200 stocks vs small caps

From blue-chip shares to small-caps what’s best for your portfolio?

Read more »

Two kids in superhero capes.
Small Cap Shares

2 small ASX shares to buy that have big potential

A fund manager is optimistic about these stocks.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Small Cap Shares

3 of the best small cap ASX stocks to buy now

Bell Potter thinks these shares are among the best to buy at the small end of town.

Read more »