Morgans names 7 small-cap ASX shares to buy for earnings season

Here are a number of small caps that the broker has given the thumbs up to this week.

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Analysts at Morgans have been running the rule over the market ahead of earnings season next month.

One area of the ASX that the broker has been looking at is the small cap space.

The good news for investors that dabble with the small side of town is that its analysts believe that the tide is turning for small cap ASX shares, making now a great time to make some investments.

The broker commented:

Small-caps continue to look constructive. Small-caps have historically bounced hardest upon confirmation of a flattening-out in the rates cycle. Several ingredients remain in place supporting a rebound in this space (rates, trading/fundamentals, sentiment/positioning). We think the tide is turning for small-caps, and now is an opportune time to build exposure to forgotten small-caps.

Which small cap ASX shares?

Morgans has named a total of seven forgotten small cap ASX shares that it likes for earnings season. They are as follows:

Clinuvel Pharmaceuticals Limited (ASX: CUV)

Morgans has an add rating and $22.00 price target on this biopharmaceutical company's shares.

Credit Corp Group Limited (ASX: CCP)

The broker has an add rating and $18.75 price target on this debt collector's shares.

DGL Group (ASX: DGL)

This industrial solutions company's shares have an add rating and $1.05 price target on them.

Helloworld Travel Ltd (ASX: HLO)

Its analysts have an add rating and $4.26 price target on this travel company's shares.

IPH Ltd (ASX: IPH)

This intellectual property services company's shares have an add rating and $8.15 price target on them.

Veem Ltd (ASX: VEE)

Veem is a designer and manufacturer of disruptive, high-technology marine propulsion and stabilisation systems for the global luxury motor yacht, fast ferry, commercial workboat, and defence industries. Morgans' last rating on the company was an add rating and $1.00 price target.

Vulcan Steel Ltd (ASX: VSL)

Morgans has an add rating and $9.00 price target on this steel manufacturer's shares.

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