At the small end of the market there are a good number of companies with the potential to grow strongly in the future.
Two that have been tipped as future stars are named below. Here's what you need to know about them:
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Damstra Holdings Ltd (ASX: DTC)
The first small cap to look at is this growing integrated workplace management solutions provider.
Damstra's cloud-based workplace management platform is used by businesses to track, manage, and protect their workers and assets.
The company also offers solutions which are proving very popular during the pandemic. These include fever detection and mobility tracking.
Damstra recently strengthened its portfolio with the acquisition of Vault Intelligence. This adds solutions combining health, safety, compliance, and risk management.
The company has been a positive performer in FY 2021, reporting first quarter revenue of $5.2 million. This was up 34% on the prior corresponding period.
Analysts at Morgan Stanley are positive on its prospects. They have an overweight rating and $2.00 price target on its shares. This compares to the current Damstra share price of $1.49.
MyDeal.com.au Limited (ASX: MYD)
Another small cap to watch is MyDeal. As its name implies, MyDeal is an online retail marketplace provider. It has a focus on furniture, homewares, appliances, technology, baby products, and hardware.
Due to the accelerating shift to online shopping because of the pandemic, MyDeal has been a very strong performer recently.
For example, the online retailer reported a 317% increase in first quarter gross sales to $56.67 million. This was underpinned by a 268% increase in active customers to 669,897.
RBC Capital Markets is a fan of the company and sees more growth ahead for it. The broker has a buy rating and $1.60 price target on its shares. This compares to the latest MyDeal share price of $1.37.
