Insights

2 buy-rated small cap ASX shares tipped for strong growth

These small cap shares could have bright futures ahead of them…
The post 2 buy-rated small cap ASX shares tipped for strong growth appeared first on The Motley Fool Australia. –

Are you looking to add a small cap share or two to your portfolio? If you are, then you might want to look closely at the shares listed below.

Here’s why analysts are positive on these small cap shares:

Audinate Group Limited (ASX: AD8)

The first small cap share to look at is Audinate. It is the leading provider of professional digital audio networking technologies globally.

Audinate’s Dante platform distributes digital audio signals over computer networks. It has been designed to bring the benefits of IT networking to the professional AV industry. The company notes that using Dante-enabled products ensures interoperability between audio devices and allows end users to enjoy high quality, flexible solutions.

The quality of Dante is ahead of the competition by such a distance that there are now more than 3,000 different products incorporating Dante for audio-over-IP connectivity. This makes it the protocol of choice in more than 91% of the networked audio products currently available.

Analysts at UBS are positive on the company and currently have a buy rating and $10.40 price target on its shares. This compares to the latest Audinate share price of $8.28.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap ASX share to watch is Volpara Health Technologies. It is a healthcare technology company that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer.

Volpara has been growing its annualised recurring revenue (ARR) at a quick rate for a number of years and this continued in FY 2021 despite the pandemic.

Looking ahead, thanks to acquisitions and its growing product suite, the company appears well-positioned to continue its strong growth in the years to come. Especially considering its ever-improving average revenue per user metric.

Management certainly appears to believe this is the case. It estimates that it has a US$750 million ARR opportunity in breast cancer screening alone. This gives it a significant runway for growth over the next decade.

Morgans is a fan of Volpara and has an add rating and $1.87 price target on the company’s shares. This compares to the current Volpara share price of $1.17.

The post 2 buy-rated small cap ASX shares tipped for strong growth 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 May 24th 2021

More reading

3 small cap ASX shares worth watching closely

2 excellent ASX healthcare shares named as buys

3 exciting small cap ASX shares to watch this month

2 small cap ASX shares that are growing quickly

2 excellent small cap ASX shares to watch very closely

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 AUDINATEGL FPO and VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and 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
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!