Insights

2 highly rated small cap ASX shares to watch

Keep an eye on these small cap ASX shares…
The post 2 highly rated small cap ASX shares to watch 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 strongly in the future.

Two small caps that investors may want to get better acquainted with are listed below. Here’s what you need to know about them:

Mach7 Technologies Ltd (ASX: M7T)

The first small cap ASX share to watch is Mach7. It is a medical imaging data management solutions provider that allows users to create a clear and complete view of the patient. This is used to help inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes.

Demand for Mach7’s offering has been growing strongly in recent years and is expected to continue doing so in the years to come. This is thanks to the quality of this software and trends such as telehealth. In respect to the latter, the company notes that COVID-19 has popularised telehealth services, which are creating a need for this type of technology.

And while it has been growing strongly, it is still only scratching at the surface of its overall market opportunity. According to management, the company’s total addressable market is estimated to be US$2.75 billion. This gives Mach7 a long runway for growth over the next decade.

Morgans currently has an add rating and $1.68 price target on its shares. This compares to the latest Mach7 share price of $1.03.

Whispir Ltd (ASX: WSP)

Another small cap share to watch is Whispir. It provides businesses with a cloud-based communications platform that brings all communications channels like email, text messaging and web chatting together in one easily accessible space. This helps businesses large and small eradicate communication inefficiencies so their staff and customers can connect in new and productive ways.

As with Mach7, demand has been increasing strongly for its offering. This has led to rapid recurring revenue growth in recent years. The good news is that Whispir’s current revenues are only a small fraction of its addressable market.

For example, at the end of the third quarter, Whispir’s annualised recurring revenue was up 20.3% to $50.3 million. This compares to its total addressable market of US$4.7 billion in the just United States market.

Ord Minnett currently has a buy rating and $4.25 price target on the company’s shares. This compares favourably to the latest Whispir share price of $2.73.

The post 2 highly rated small cap ASX shares to watch appeared first on The Motley Fool Australia.

Should you invest $1,000 in Whispir right now?

Before you consider Whispir, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Whispir wasn’t one of them.

The online investing service he’s run for nearly 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 are better buys.

*Returns as of May 24th 2021

More reading

ASX company boss finally exits after 98% wiped off share price

Here are 3 ASX tech shares tipped for big things

2 exciting ASX tech shares that have been named as buys

4 exciting small cap ASX shares to watch

Fund managers are buying these ASX shares

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 MACH7 FPO and Whispir Ltd. The Motley Fool Australia has recommended MACH7 FPO and Whispir Ltd. 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!