At the small end of the Australian share market, there are a number of companies with the potential to grow significantly in the future.
Two that investors might want to get better acquainted with are listed below. Here's what you need to know about them:
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Bigtincan Holdings Ltd (ASX: BTH)
The first small cap to watch is Bigtincan. It is a provider of enterprise mobility software to sales and service organisations. This platform allows businesses to increase sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity.
Bigtincan has been a positive performer in FY 2021. Management recently advised that is on course achieve the top end of its annualised recurring revenue (ARR) guidance range of $49 million to $53 million this year. This will be a 48% increase on FY 2020's ARR of $35.8 million.
Morgan Stanley is positive on the company. It currently has an overweight rating and $1.50 price target on its shares. This compares to the latest Bigtincan share price of 82 cents.
Serko Ltd (ASX: SKO)
Another small cap to watch is Serko. It is the online travel booking and expense management provider behind the Zeno Travel corporate travel tool and the Zeno Expense platform.
Given its exposure to travel markets, demand for its offering has fallen heavily during the pandemic. However, with travel markets beginning to recover, Serko has also reported big improvements in its performance. For example, in March it revealed that transaction volumes were averaging 68% of the volumes recorded for the same period in March 2019, which was unaffected by COVID-19.
Looking ahead, a significant deal with travel giant Booking.com could be a game-changer once trading conditions return to normal.
Macquarie is a fan of the company, particularly given its Booking.com deal. It currently has an outperform rating and NZ$7.25 (A$6.72) price target on its shares. This compares to the latest Serko share price of $6.06.
