Top brokers name 3 ASX small cap shares to buy

Immutep Ltd (ASX:IMM) and these small cap ASX shares have been named as buys by brokers. Here’s why they are bullish on them…

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As well as covering large caps like Afterpay Ltd (ASX: APT) and Telstra Corporation Ltd (ASX: TLS), many brokers also cover smaller companies.

In light of this, I thought I would scour through a range of recent notes to see which small cap ASX shares are in favour with brokers at present.

Three that have been given buy ratings are listed below. Here’s why brokers like them:

Immutep Ltd (ASX: IMM)

According to a note out of Bell Potter, its analysts have a speculative buy rating and 85 cents price target on this biotechnology company’s shares. The broker notes that Immutep has recently been granted Fast Track status by the US FDA for its efti product candidate. This relates to a trial for first line recurrent or metastatic head and neck squamous cell carcinoma (HNSCC). The broker has increased the probability of success for the treatment in response to this and envisages licensing deals in 2023 if all goes to plan. The Immutep share price is fetching 44.5 cents this afternoon.

Silk Laser Australia Ltd (ASX: SLA)

Analysts at Ord Minnett currently have a buy rating and $5.06 price target on this laser, skin care, and cosmetic injections company’s shares. According to the note, the broker was very happy with Silk Laser’s performance during the first half. It notes that demand was so strong that the company upgraded its earnings guidance. Positively, Ord Minnett appears confident that Silk can easily achieve the top end of its new guidance range. The Silk Laser share price is trading at $4.50 on Friday.

Telix Pharmaceuticals Ltd (ASX: TLX)

A note out of Wilsons reveals that its analysts have an overweight rating and $5.40 price target on this clinical-stage biopharmaceutical company’s shares. According to the note, the broker was pleased to see Novartis report positive results from a trial of Lu-PSMA-617 for prostate cancer. It believes this development is a big positive for Telix, which has a similar therapy – TLX591-CDx. Its ProstACT trial starts soon and will test TLX591 as a second line therapy. The Telix share price is fetching $3.94 on Friday afternoon.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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