2 exciting small cap ASX shares for your watchlist

Here is a couple of small cap shares to watch…

| More on:
A man sits bolt upright watching something intently on his television.

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

The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Two that investors might want to get better acquainted with are listed below. Here's why they should be on your watchlist:

Hipages Group Holdings Ltd (ASX: HPG)

The first small cap ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. While its first half performance was a little on the disappointing side due to the negative impact of lockdowns on tradie subscriptions, management expects a swift rebound now restrictions are easing. In addition, its performance looks set to be boosted by a recent acquisition in New Zealand and partnership with leading property management platform Bricks + Agent.

Goldman Sachs also remains confident that a post-lockdown rebound is coming. After which, the broker believes Hipages is well-placed for strong long term growth as it grows its ecosystem into a huge addressable market. Goldman has a buy rating and $3.60 price target on its shares.

Whispir Ltd (ASX: WSP)

Another small cap ASX share to watch is Whispir. It is a global scale SaaS company that provides a communications workflow platform that automates interactions between organisations and people. Its products have been in-demand with businesses across the globe, which has underpinned strong recurring revenue growth in recent years. Pleasingly, this continued in the first half of FY 2022, with Whispir reporting annualised recurring revenue (ARR) of $60 million. This was up from $47.4 million or 26.6% from a year earlier but is still only scratching at the surface of its massive addressable market.

Shaw and Partners is positive on Whispir and was impressed with its first half performance. Its analysts currently have a buy rating and $4.85 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 and has recommended Alcidion Group Ltd, BIGTINCAN FPO, and Whispir Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. The Motley Fool Australia has recommended Alcidion Group Ltd, BIGTINCAN FPO, and Whispir 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

Two kids in superhero capes.
Small Cap Shares

Guess which 2 ASX small-cap shares just rocketed 50%+ on big news!

Investors are sending these two ASX small-cap stocks through the roof on Tuesday.

Read more »

A person with a round-mouthed expression clutches a device screen and looks shocked and surprised.
Small Cap Shares

Guess which small cap ASX share could rise 100%+

A leading broker is tipping big returns from this speculative stock.

Read more »

Rocket powering up and symbolising a rising share price.
Mergers & Acquisitions

Guess which ASX microcap stock just rocketed 67% on takeover news

Investors are sending the ASX microcap stock flying amid a takeover bid.

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
Small Cap Shares

3 exciting small cap ASX shares to buy in November

These small caps come with big buy ratings from brokers. Let's see what they are saying.

Read more »

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

This buy-rated small cap ASX stock has a 'strong underlying business with pricing power'

Bell Potter has good things to say about this buy-rated stock.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Small Cap Shares

3 small cap ASX shares to buy for massive returns

Analysts are tipping these buy-rated stocks to deliver the goods for investors over the next 12 months.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
Small Cap Shares

Buy these small cap ASX shares for big juicy returns

Analysts have good things to say about these buy-rated stocks.

Read more »

Two kids in superhero capes.
Small Cap Shares

2 small-cap ASX shares I think are great buys right now

These small stocks have big potential, in my opinion.

Read more »