Insights

3 exciting small cap ASX shares to put on your watchlist

Check out these highly rated small cap shares…
The post 3 exciting small cap ASX shares to put on your watchlist appeared first on The Motley Fool Australia. –

Given the strong potential returns on offer at the small end of town, having a little exposure to it could potentially give a balanced portfolio a boost.

With that in mind, if your risk tolerance allows for it, you may want to get better acquainted with these highly rated small cap shares:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to watch is Adore Beauty. It is Australia’s leading online beauty retailer. While its near term growth may be subdued as it cycles elevated sales at the height of the pandemic, it has been tipped to resume its rapid growth soon after. Analysts at UBS are positive on its outlook. The broker currently has a buy rating and $5.60 price target on its shares.

Booktopia Group Ltd (ASX: BKG)

The second small cap ASX share to watch is Booktopia. This online book retailer has been growing at an explosive rate in FY 2021. For example, during the first half, the company reported a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million. It then followed this up with a 53% increase in quarterly revenue during the third quarter. This is being driven by the shift to online shopping and its new distribution centre. Morgans is a fan of Booktopia and is expecting further market share gains. It has an add rating and $3.54 price target on its shares.

Universal Store Holdings Limited (ASX: UNI)

Another small cap to watch is Universal Store. It is a fashion retailer targeting the 16-35 year old fashion focused customer. It has been a very positive performer during the pandemic, reporting impressive growth during the first half of FY 2021 and then again during the third quarter. This appears to have positioned Universal Store for a bumper full year profit result. Morgans currently has an add rating and $8.37 price target on its shares.

The post 3 exciting small cap ASX shares to put on your watchlist 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

ASX 200 flat, e-commerce ASX shares soar, Metcash rises

Why analysts rate these small cap ASX shares as buys

3 small cap ASX shares worth watching closely

4 exciting small cap ASX shares to watch

2 stellar small cap ASX shares to watch

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. has recommended Adore Beauty Group Limited and Booktopia Group Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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!