These small caps could be worth considering…
The post Broker names 2 small cap ASX shares to buy appeared first on The Motley Fool Australia. –
If you’re wanting to invest in some small cap shares, then you may want to check out the ones listed below.
Here’s why the team at Bell Potter are positive on them:
Infomedia Limited (ASX: IFM)
Infomedia is a technology services developer and supplier of electronic parts catalogues and service systems to the automotive industry. In addition, the company provides information management and analysis for the Australian automotive and oil industries.
Bell Potter currently has a buy rating and $2.00 price target on its shares. This compares to the latest Infomedia share price of $1.71.
It commented: “Infomedia has underperformed the tech sector over the past 12-18 months due mainly to a reasonably large capital raising in May 2020 after which it sat on the cash for a year, an ordinary 1HFY21 result and more recently the resignation of the CFO. The company appears to have turned the corner, however, with a much better 2HFY21, a good acquisition and the appointment of a new CFO. In our view the stock is worth a revisit given it has underperformed, is not expensive and is not a crowded trade.”
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a medical technology company with a focus on breast imaging analytics and analysis products. These products improve clinical decision-making and the early detection of breast cancer.
The analysts at Bell Potter currently have a buy rating and $1.60 price target on its shares. This compares to the most recent Volpara share price of $1.21.
The broker is expecting strong growth in FY 2022, driven partly by the recent acquisition of CRA.
It explained: “Over the course of FY22 we expect record organic revenue growth as the company leverages is technology platform into an expanded base of customers. This includes numerous CRA only deals where the technology is integrated with the major electronic health record providers in the US.”
Should you invest $1,000 in Volpara right now?
Before you consider Volpara, 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 Volpara 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 August 16th 2021
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 Infomedia and VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Infomedia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.