2 small cap ASX shares that could be destined for big things

Whispir (ASX:WSP) and this ASX small cap share could be destined for big things. Here's what you need to know about them…

| More on:
A man drawing an arrow on a growth chart, indicating a surging share price

Image source: Netflix

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're looking at investing at the small side of the market, then the two small caps listed below could be worth considering.

While there is certainly still a lot of work to be done, they both appear to be carving out bright futures for themselves.

Here's why they are rated highly right now:

Serko Ltd (ASX: SKO)

Serko is an online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. Zeno Travel provides AI-powered end-to-end travel itineraries, cost control and travel policy compliance to corporate customers. Whereas the latter platform allows its users to automate and streamline the expense administration function, identify out-of-policy expense claims, and prevent fraud.

Although Serko's growth has been hit hard by the pandemic, it is starting to see transaction volumes recover. Earlier this month, Serko revealed that volumes increased to 44% of prior year volumes for the month of November. This was up from 35% of prior year volumes for the month of October.

Analysts at Morgans are positive on its prospects, particularly given its major deal with travel giant Booking.com. Its analysts have a buy rating and $6.55 price target on the company's shares. This compares to the latest Serko share price of $4.99.

Whispir (ASX: WSP)

Whispir is a software-as-a-service communications workflow platform provider. Its high quality software platform allows companies to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.

This helps make operations more efficient and can cut down the number of service desk support calls. It counts a number of blue chips as customers such as AGL Energy Limited (ASX: AGL), Disney, and Foxtel. This underpinned strong annualised recurring revenue (ARR) growth in FY 2020, with more of the same expected in the new financial year.

Analysts at Ord Minnett currently have a $4.40 price target on the company's shares. This compares to the current Whispir share price of $3.19.

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's parent company Motley Fool Holdings Inc. owns shares of Serko Ltd. The Motley Fool Australia has recommended Serko Ltd and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Speculative

A man balances on a tightrope across rocks above the sea at sunset.
Speculative

My top high-risk, high-reward ASX shares to buy in March

If you go into it with your eyes open about the pitfalls, speculative stocks could be fine in a well…

Read more »

A group of three scientists talking excitedly while working in a lab on a diabetes test developed by Proteomics International Laboratories which is an ASX share tipped to explode by Alto Capital
Ask a Fund Manager

2 'outstanding' small-cap ASX shares that could explode: expert

Ask A Fund Manager: Alto Capital's Tony Locantro reveals a pair of small caps that he reckons have a bright…

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Technology Shares

Why is the Weebit Nano share price rocketing 23% higher?

Weebit Nano shares are on fire on Wednesday...

Read more »

Man presses green buy button and red sell button on a graph.
Broker Notes

Broker names 3 speculative ASX shares to buy

Here are three speculative shares rated as buys...

Read more »

Scared looking people on a rollercoaster ride representing the volatile Mineral Resources share price in 2022
Resources Shares

May was a rollercoaster ride for the Vulcan (ASX:VUL) share price

Shareholders in the ambitious lithium producer had to fasten their seat belts last month.

Read more »

Five stacked building blocks with green arrows, indicating rising inflation or share prices
Share Gainers

The ClearVue (ASX:CPV) share price is up 65% in a month. Here's why

The ClearVue Technologies Ltd (ASX: CPV) share price is up 65% in the last month. We take a look at…

Read more »

tech shares represented by woman holding hand out to touch icons on digital screen
Speculative

2 small cap ASX tech shares to buy now

Whispir Ltd (ASX:WSP) and this small cap ASX tech share could be quality options for investors after recent pullbacks...

Read more »

Speculative

2 small cap ASX shares you need to know about

Nitro Software Ltd (ASX:NTO) and this small cap ASX share could be the ones you need to know about right now.…

Read more »