Because I’m a fan of small cap shares, I feel quite lucky to have a large number to choose from on the Australian share market.
Three small cap ASX shares that stand out from the rest and could have bright futures are listed below. Here’s what you need to know about them:
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is an artificial intelligence-powered sales enablement automation platform provider. Strong demand for its platform from some of the biggest companies in the world has underpinned solid growth in recent years. This has continued in FY 2021, with Bigtincan recently releasing a very strong half year result. The company reported annualised recurring revenue (ARR) of $48.4 million at the end of the half, which was a 50% increase over the prior corresponding period.
Ord Minnett currently has a buy rating and $1.08 price target on its shares.
Booktopia Group Ltd (ASX: BKG)
Booktopia is an online book retailer which has also been growing at a rapid rate. Last month it released its half year results and revealed a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million. This was driven by the shift to online shopping and its new distribution centre. The latter helped the company ship more units than ever before during the half.
Morgans is a fan and has an add rating and $3.53 price target on Booktopia’s shares.
Doctor Care Anywhere Ltd (ASX: DOC)
A final small cap to watch is Doctor Care Anywhere. It is a growing UK-based telehealth company that is aiming to deliver high-quality, effective, and efficient care to its patients. Due partly to the pandemic accelerating the adoption of telehealth services, Doctor Care Anywhere is another company growing quickly. In January the company released its fourth quarter update and reported a 151% increase in revenue to 3.8 million pounds.
Bell Potter is positive on its prospects. The broker has a buy rating and $1.95 price target on the company’s shares.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Booktopia Group Limited and Doctor Care Anywhere Group PLC. The Motley Fool Australia has recommended BIGTINCAN FPO and Doctor Care Anywhere Group PLC. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.