Here’s why you need to know about Bigtincan Holdings Ltd (ASX:BTH) and this small cap ASX share…
The post 2 growing small cap ASX shares you need to know appeared first on The Motley Fool Australia. –
If you’re a fan of both small caps and tech shares then you’re in luck. Right now, there are a number trading on the ASX market that have a lot of growth potential.
Two that could be worth keeping a close eye on are listed below. Here’s what you need to know about them:
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is a provider of enterprise mobility software to sales and service organisations. It has been designed to allow users to increase sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity.
Demand has been strong for its platform. This includes from some of the biggest companies in the world, which has underpinned very strong recurring revenue growth.
The company recently released its third quarter update and revealed that it is forecasting its annualised recurring revenue (ARR) to be at the top end of its FY 2021 guidance range of $49 million to $53 million. This compares to FY 2020’s ARR of $35.8 million, representing year on year growth of 36.9% to 48%.
Earlier this month, Morgan Stanley put an overweight rating and $1.50 price target on the company’s shares.
Volpara Health Technologies Ltd (ASX: VHT)
Another small cap tech share to watch is Volpara. It is a healthcare technology company that provides software which leverages artificial intelligence imaging algorithms to help with the early detection of breast cancer.
The company notes that its innovative products have an ever-increasing number of patents, trademarks, and regulatory clearances, including FDA clearance and CE marking. They are also validated by a volume of peer-reviewed publications and unrivalled in the breast screening industry.
Volpara has been a very strong performer in recent years and has consistently grown its market share in the United States. Pleasingly, it appears well-placed for more of the same in the coming years thanks to the quality of its offering and recent acquisitions and developments. Combined with increases in its average revenue per user metric, this could underpin strong revenue growth over the next decade.
Morgans is a fan of the company. It currently has an add rating and $1.94 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.
*Returns as of February 15th 2021
- 2 little known ASX growth shares to buy
- What’s happening with the Bigtincan (ASX:BTH) share price?
- 3 stellar small cap ASX shares to watch
- 2 rapidly growing small cap ASX shares to watch
- 2 exciting small cap ASX shares to watch in May
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 recommends BIGTINCAN FPO and VOLPARA FPO NZ. The Motley Fool Australia has recommended BIGTINCAN FPO and VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.