Whispir Ltd (ASX:WSP) and this small cap ASX share should be on your watchlist. Here’s why…
The post 2 small cap ASX shares to keep your eyes on appeared first on The Motley Fool Australia. –
At the small end of the market, there are a number of ASX shares with the potential to grow strongly in the future.
Two that should be on your watchlists are listed below. Here’s what you need to know about them:
MNF Group Ltd (ASX: MNF)
MNF Group is a small cap ASX share to watch. It specialises in Voice over Internet Protocol (VoIP) technology which is used to support services like teleconferencing, online business meetings, and digital data transfers.
It looks well-placed for growth over the long term thanks to a number of favourable tailwinds. These include the NBN rollout and the work from home initiative.
The company is also expanding into the Asian market. In February it was on the cusp of entering Singapore and was looking at a further six markets in the region.
This should be supportive of further recurring revenue growth in the coming years. Speaking of which, at the end of December, its recurring revenues stood at $55.7 million. This was up 15% on the prior corresponding period.
Morgan Stanley is a fan of the company. It currently has an overweight rating and $6.30 price target on its shares.
Whispir Ltd (ASX: WSP)
Another small cap share to watch is Whispir. It is a software-as-a-service communications workflow platform provider.
Whispir provides an industry-leading software platform that allows governments and businesses to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. Demand has been increasing strongly, leading to stellar recurring revenue growth in recent years.
This continued in the third quarter of FY 2021. According to the release, at the end of March, the company’s Annualised Recurring Revenue (ARR) was up 20.3% over the prior corresponding period to $50.3 million. This was also up 5.2% since the end of the second quarter.
However, it is still only scratching at the surface of its TAM. Management estimates that it has a total addressable market (TAM) of US4.7 billion in the just the United States.
Ord Minnett currently has a buy rating and $4.25 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 highly rated ASX tech shares for growth investors
- 3 growing small cap ASX shares to watch
- 2 growing small cap ASX shares you need to watch
- Whispir (ASX:WSP) share price charges higher following Q3 update
- 3 excellent small cap ASX shares to watch closely
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 Whispir Ltd. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.