Due to the recent market volatility, a number of small cap tech shares have been dragged notably lower.
Two that could be in the buy zone now are listed below. Here's what you need to know about them:
Nitro Software Ltd (ASX: NTO)
The first small cap ASX tech share to consider is Nitro Software. It is the software company behind the popular Nitro Productivity Suite.
The Nitro share price has pulled back by 35% since hitting a record high late last year. This appears to have created a buying opportunity according to analysts at Morgan Stanley. Late last month, the broker retained its overweight rating and $3.50 price target on the company's shares.
Morgan Stanley appeared pleased with Nitro's performance during FY 2020 and its guidance for the year ahead.
In case you missed its full year results, Nitro delivered a 64% increase in annual recurring revenue (ARR) to $27.7 million. And pleasingly, more of the same is expected in FY 2021, with management providing ARR guidance of between $39 million and $42 million. This represents year on year growth of 41% to 51.6%.
Whispir Ltd (ASX: WSP)
Another small cap ASX tech share to look at is Whispir. It is a fast-growing software-as-a-service communications workflow platform provider.
Its software platform allows businesses and governments to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.
Due partly to recent volatility, the Whispir share price is currently trading 33% lower than its record high. This led to analysts at Ord Minnett recently upgrading its shares to a buy rating with a $4.53 price target.
It was pleased with Whispir's half year results, which saw the company report a 29.2% increase in its ARR to $47.4 million. This was driven by increased activity from its existing customers and the addition of 77 net new customer to a total of 707 customers.
Looking ahead, the broker believes a similar level of growth can be maintained over the medium term.
