Insights

3 exciting small cap ASX shares to watch

Booktopia Group Ltd (ASX:BKG) and these ASX small cap shares could be worth watching closely this year. Here’s what you need to know…
The post 3 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia. –

ASX share price on watch represented by man peering closely at computer screen

If you’re a big fan of investing in small cap shares, then you might want to look at the ones listed below.

Here’s why these three ASX small cap shares could be ones to watch:

Audinate Group Limited (ASX: AD8)

Audinate is digital audio-visual networking technologies provider. It is the company behind the industry-leading Dante audio over IP networking solution. Audinate’s solutions replace point-to-point audio and video connections with easy-to-use, scalable, flexible networking. They have been adopted by hundreds of manufacturers in thousands of professional products, making its products the de facto standard for modern AV connectivity. While demand was very soft during the pandemic, sales are expected to increase materially once the crisis passes. 

UBS currently has a buy rating and $10.10 price target on the company’s shares.

Booktopia Group Ltd (ASX: BKG)

Another small cap to watch is Booktopia. It is an online book retailer which, unlike Audinate, has been in fine form during the pandemic. For example, during the first half of FY 2021, the company reported a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million. This was driven by the shift to online shopping and its investment in a new distribution centre. The latter allowed the company to take advantage of the increased demand by shipping more books than ever before.

Last month Morgans put an add rating and $3.53 price target on Booktopia’s shares.

Universal Store Holdings Limited (ASX: UNI)

Universal Store is a fashion retailer for the 16-35 year old fashion-focused consumer. It aims to deliver an ever-changing and carefully curated selection of on-trend products to customers. This tactic is working wonders and helped Universal Store deliver a stellar half year result in February. For the six months ended 31 December, Universal Store reported a 23.3% increase in sales to $118 million and a 63.6% increase in underlying net profit after tax to $21.1 million.

This went down well with analysts at Morgans, who believe more strong growth is coming. The broker currently has an add rating and $8.37 price target on its shares.

Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Booktopia Group Limited. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia.

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!