Insights

2 buy-rated small cap ASX shares

These small caps have buy ratings on their shares…
The post 2 buy-rated small cap ASX shares appeared first on The Motley Fool Australia. –

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 investors might want to get better acquainted with are listed below. Here’s why they are highly rated:

Universal Store Holdings Limited (ASX: UNI)

The first small cap ASX share to look at is Universal Store. It is a fashion retailer delivering an ever-changing and carefully curated selection of on-trend products.

Thanks to its strong market position and a favourable shift in consumer spending, Universal Store was a very strong performer in FY 2021.

For example, for the 12 months ended 30 June, the company reported a 36.1% increase in sales to $210.8 million. And thanks to a 210 basis point increase in its gross margin, its profits grew even quicker over the year. Universal Store reported an 87.7% jump in underlying net profit after tax to $30.4 million.

In response to its full year results, the team at Morgans retained their add rating and lifted their price target to $8.72. While it acknowledges that lockdowns will impact trading in the short-term, it notes that demand quickly recovers in this category (and for the company in particular) once restrictions ease.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap ASX share to look at is Volpara Health Technologies. It is a healthcare technology company with a focus on the early detection of breast cancer by improving quality of screening using artificial intelligence.

Volpara’s Oxford University-deveoped technology has been designed to provide objective data on breast tissue density. This is a key risk marker for breast cancer.

The company has been growing its market share in the United States at a strong rate and appears well-placed to continue this trend in the future. This is thanks to its quality, recent acquisitions, and the increasing awareness of the importance of breast tissue density.

Morgans is also very positive on Volpara. It currently has an add rating and $1.87 price target on the company’s shares.

The post 2 buy-rated small cap ASX shares appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

3 growing small cap ASX shares named as buys

2 ASX shares that may be worth looking at this weekend

3 small cap ASX shares to put on your watchlist this week

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 shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!