3 small-cap ASX shares to buy in December

These small caps have been given the thumbs up by analysts.

| More on:
a man with a wide, eager smile on his face holds up three fingers.

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

Are you looking for some ASX small-cap shares to add to your portfolio in December? Then take a look at the three listed below.

Here's why they could be worth considering for investors with a high-risk tolerance:

Arafura Rare Earths Ltd (ASX: ARU)

The first small-cap ASX share to look at is Arafura Rare Earths. It is the owner of the Nolans Project, which aims to supply a significant proportion of the world's neodymium and praseodymium (NdPr) demand in the future. Bell Potter believes the company has a bright future. It notes that "rare earths projects such as Nolans should continue to be supported by growing demand from the electric vehicle and wind turbine sectors in combination with a need to de-risk current supply concentration in China."

Bell Potter has a speculative buy rating and 65 cents price target on Arafura's shares.

Catapult Group International Ltd (ASX: CAT)

Another small-cap ASX share to look at is Catapult. It is a global sports technology company providing elite sporting organisations with real time data and analytics to monitor and measure athletes. It counts many of the most successful sports teams around the globe as customers.

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."

The broker has a buy rating and a $1.50 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

A third 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 a fan of the company. It expects Readytech to "deliver mid-teens organic growth at an expanding profit margin through the cycle."

Goldman has a buy rating and a $4.50 price target on its shares.

Should you invest $1,000 in The Reject Shop Limited right now?

Before you buy The Reject Shop Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and The Reject Shop Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 9 January 2025

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. has positions in and has recommended Catapult Group International, Goldman Sachs Group, and ReadyTech. The Motley Fool Australia has recommended Catapult Group International and ReadyTech. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Small Cap Shares

A little girl with red hair runs excitedly with a rocket strapped to her back, trying to launch.
Small Cap Shares

Guess which ASX small-cap stock exploded 154% on big US news!

ASX small-cap stocks carry added risk, but also sometimes offer supersized rewards.

Read more »

A group of businesspeople clapping.
Healthcare Shares

This fund returned 109% in 2024. Here are 2 of its best-performing ASX shares

Small caps proved to be the winners last year.

Read more »

A boy stands firm on a rocky cliff holding a rocket in each hand and looking up toward the sky, anticipating flying into space.
Technology Shares

2 small-cap ASX tech shares rocketing on big US news

The junior ASX tech shares are enjoying a big lift following positive developments in the US.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Small Cap Shares

Guess which ASX small-cap is up 92% in just 2 days!

Investors have been fighting to get hold of this stock this week. But why?

Read more »

Two boys looking at each other while standing by start line on stadium against two schoolgirls.
Small Cap Shares

The imminent tailwind for ASX small-cap shares: fundie

Oscar Oberg from Wilson Asset Management explains why he thinks it's a good time to buy small-caps.

Read more »

Small girl giving a fist bump with a piggy bank in front of her.
Small Cap Shares

Want more exposure to small-cap stocks? I'd invest in this ASX ETF

Small-caps can have a lot of growth potential.

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

Bell Potter says this ASX share is a 'small-cap investment opportunity'

The broker thinks this small cap is destined to deliver strong earnings growth.

Read more »

man looking happy and excited as he looks at his mobile phone
Small Cap Shares

Guess which small cap ASX stock is jumping 12% despite the market selloff

Let's find out why investors are buying this small cap today.

Read more »