If you're looking for small cap ASX shares to add to your watchlist, then I think the two listed below could be worth considering.
Here's why they should be on your watchlists:
Aerometrex Ltd (ASX: AMX)
Aerometrex is a growing aerial mapping business. It specialises in aerial photography, photogrammetry, LiDAR, 3D modelling, and aerial imagery subscription services. The latter is through its MetroMap offering, which provides access to high quality 2D imagery and 3D reality mesh models. The company has been busy developing new products to strengthen its offering and in October announced a new bush fire prevention product. This new technology is able to determine, in three dimensions, the exact fuel load densities in any bushfire prone region in Australia.
Analysts at Morgans are positive on the company's prospects and currently have an add rating and $1.83 price target on its shares. This compares to the current Aerometrex share price of $1.13. It notes that the company's shares are trading at a significant discount to rival Nearmap Ltd (ASX: NEA).
Audinate Group Limited (ASX: AD8)
Another small cap share to watch is Audinate. It is a digital audio-visual networking technologies provider that is best known for its innovative Dante audio over IP networking solution. This industry-leading product is used widely across the professional live sound, commercial installation, broadcast, and recording industries globally.
Management recently revealed that the number of Dante enabled products manufactured by its customers has now grown to 2,804. This is eight times greater than its nearest rival, making it the clear industry leader.
UBS is a fan of the company and has a buy rating and $8.00 price target on the company's shares at present. It has been impressed with its recovery from the pandemic and notes that its first quarter result was well ahead of its expectations.
