If your risk profile allows you to invest in small cap ASX shares, then you might want to take a look at the ones listed below.
All three of these small cap shares have been growing strongly and have been tipped to continue doing so in the future. Here's what you need to know:
ELMO Software Ltd (ASX: ELO)
ELMO is a cloud-based human resources and payroll software company which provides a unified platform to streamline processes for employee administration, recruitment, on-boarding, learning, performance, remuneration, compliance training and payroll. It has a massive opportunity in the ANZ and UK markets and the option to expand internationally in the future thanks to its jurisdiction agnostic platform. Morgan Stanley currently rates ELMO as overweight with a $9.70 price target.
Nitro Software Ltd (ASX: NTO)
Nitro Software could be a small cap ASX share worth keeping an eye on. It is a software company aiming to drive digital transformation in organisations around the world across multiple industries. Its core solution is the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution. Analysts at Morgan Stanley are also positive on Nitro and have an overweight rating and $3.50 price target on its shares.
Whispir (ASX: WSP)
Whispir is a software-as-a-service communications workflow platform provider which allows businesses and governments to deliver two-way interactions at scale using automated multi-channel communication workflows. Its platform was used to great effect during the height of the pandemic when 22 government departments used it for COVID-19 communications. Management estimates that the Workflow Communications platform as a Service market could reach US$8 billion per year by 2024. This compares to the revenue of $39.1 million it recorded in FY 2020, which was up 25.5% year on year. Wilsons has an overweight rating and $5.10 price target on the company's shares.
