2 highly rated small cap ASX shares to watch

Here are a couple of highly rated options at the small side of the market…

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If you have a penchant for investing in small cap shares, then you might want to take a look at the two listed below.

Here’s why these are highly rated by analysts right now:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a growing provider of enterprise mobility software to sales and service organisations. The company notes that its mobile, AI-powered sales enablement automation platform features the industry’s premier user experience that empowers sales reps to more effectively engage with customers and prospects and encourages team-wide adoption.

Bigtincan has been a positive performer in FY 2021. Management recently advised that it has achieved the top end of its annualised recurring revenue (ARR) guidance range of $49 million to $53 million this year with a few weeks of the financial year remaining. This will mean an increase of at least 48% 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.

Serko Ltd (ASX: SKO)

Serko is a travel technology company that offers a number of solutions to businesses. These include AI-powered end-to-end travel itineraries, cost control, travel policy compliance solutions, and fraud prevention. Combined, its technology makes the process of booking, managing and reconciling business travel and expenses, a better experience for everyone involved.

While COVID-19 has unsurprisingly hit the company hard and led to a significant reduction in demand, it has been recovering in recent months and looks well-placed to build on this as vaccines roll out and travelling increases. In addition to this, the company signed a game-changing deal with travel giant Booking.com last year. It is expected to have a material impact on its revenue in FY 2022.

Earlier this month Macquarie put an outperform rating and NZ$8.31 (A$7.71) price target on its shares.

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Motley Fool contributor 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 has recommended BIGTINCAN FPO and Serko Ltd. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended Serko Ltd. 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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