Looking for some ASX small-cap shares to add to your portfolio in September? Then have a look at the three listed below.
Here's why they could be top options for investors with a higher tolerance for risk:
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4DMedical Ltd (ASX: 4DX)
The first small-cap ASX share that could be a buy is 4DMedical. It is a global medical technology company that believes it has created a step change in the capacity to accurately and quickly understand the lung function of patients with respiratory diseases.
Bell Potter is a fan of the company and sees a big opportunity in the United States. It highlights that with "3.5m veterans potentially eligible for screening to toxins from burn pit exposure, this opportunity continues to be the most lucrative."
Bell Potter has a speculative buy rating and a $1.06 price target on its shares.
Catapult Group International Ltd (ASX: CAT)
Another small-cap ASX share that has been named as a buy is Catapult. It is a global sports technology company that provides elite sporting organisations with real time data and analytics to monitor and measure athletes.
Bell Potter is also a fan of Catapult, particularly now it has turned EBITDA profitable. In addition, the broker is expecting "a return to double digit revenue growth in FY24 and with a relatively stable fixed cost base, a reasonable portion of the additional revenue is expected to fall through to earnings."
The broker has a buy rating and a $1.35 price target on its shares.
Readytech Holdings Ltd (ASX: RDY)
A final small-cap ASX share that could be a buy is Readytech. It is a leading provider of mission-critical software-as-a-service (SaaS) solutions for the education, workforce management, government and justice sectors.
Goldman Sachs is positive on the company's outlook and believes its shares are cheap at current levels. It notes that "RDY remains undervalued compared to SaaS peers on an absolute and growth adjusted basis, trading on 11.5x FY24E EV/EBITDA vs a 19% FY23-26E EBITDA CAGR or a growth-adjusted multiple of 0.6x vs peers typically at ~1.5x."
Goldman has a buy rating and a $4.50 price target on its shares.
