At the small end of the Australian share market, there are a number of companies with the potential to grow materially in the future.
Two that brokers believe are in the buy zone are listed below. Here's what you need to know about them:
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MyDeal.com.au Limited (ASX: MYD)
The first small cap ASX share to look at is MyDeal.com.au. It is an online retail marketplace with a focus on homewares, furniture, and electronics.
Despite delivering very strong growth during the first half, the MyDeal share price has been dragged lower by the tech selloff in recent weeks. This means it is now trading below its IPO price of $1.00.
This could be a buying opportunity for patient investors, especially given its exposure to the structural shift to online shopping and its rapidly growing active customer base. In respect to the latter, at the end of the first half the company had 813,764 active customers.
One leading broker that is a fan is Morgans. In response to the company's half year results last month, the broker retained its add rating and $1.70 price target.
Whispir Ltd (ASX: WSP)
Another small cap ASX share to look at is Whispir. It is a software-as-a-service communications workflow platform provider.
Whispir's increasingly popular software platform allows businesses and governments to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.
As with MyDeal, the Whispir share price has come under pressure during the tech selloff. So much so, it is now trading 30% lower than its 52-week high. This is despite the company releasing a strong half year result last month and reporting a 29.2% increase in its annualised recurring revenue to $47.4 million.
Ord Minnett appears to see this as a buying opportunity. Earlier today it retained its buy rating and put a $4.25 price target on its shares.
