2 small cap ASX shares that are highly rated

These small cap shares have been tipped to have bright futures…
The post 2 small cap ASX shares that are highly rated appeared first on The Motley Fool Australia. –

While small cap shares carry a lot more risk than blue chips, the potential returns on offer are vastly superior. This could make it worth dedicating a small portion of a portfolio to them if your risk profile allows.

With that in mind, I have picked out two small cap ASX shares that are highly rated. Here’s why they could be worth a closer look:

Doctor Care Anywhere Ltd (ASX: DOC)

Doctor Care Anywhere is a growing UK-based telehealth company that is aiming to deliver high-quality, effective, and efficient care to its patients.

It has been a very strong performer over the last 12 months. This has been driven by the pandemic accelerating the adoption of telehealth services globally.

Pleasingly, even though the worst of the pandemic is behind us and economies are reopening again, the company continues to report solid growth in signups and revenue.

For example, in April, Doctor Care Anywhere released its first quarter update and reported a 16.5% increase in unaudited underlying revenue to 4.4 million pounds (A$6.87 million). This was underpinned by a 14.7% increase in signups to the platform to 500,000 and a 21.9% increase in quarterly consultations delivered to 90,500.

One broker that is a fan is Bell Potter. It currently has a buy rating and $1.95 price target on the company’s shares.

Over The Wire Holdings Ltd (ASX: OTW)

Another small cap share to watch is Over The Wire. It is a telecommunications, cloud, and IT solutions provider,

As with Doctor Care Anywhere, it has been a positive performer in FY 2021. In February, the company reported a 17% increase in revenue to $50.3 million and a 28% jump in EBITDA to $10.5 million.

One key highlight from this result was its recurring revenue. Almost all of Over The Wire’s revenue is now classed as recurring, which gives it a firm foundation to build on in the coming years.

Analysts at Canaccord Genuity are positive on its growth prospects. The broker currently has a buy rating and $4.85 price target on its shares.

The post 2 small cap ASX shares that are highly rated 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

2 exciting small cap ASX shares that could be buys

2 growing small cap ASX shares to watch closely

ASX 200 rises, TechnologyOne up, Airtasker jumps

Why the Doctor Care Anywhere (ASX:DOC) share price is surging 11% today
3 small cap ASX shares that could be destined for big things

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Doctor Care Anywhere Group PLC and Over The Wire Holdings Ltd. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC and Over The Wire Holdings 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!