Are you looking to add a small cap share or two to your portfolio? If you are, then you might want to look closely at the shares listed below.
Here's why analysts are positive on these small cap shares:
Image source: Getty Images
Audinate Group Limited (ASX: AD8)
The first small cap share to look at is Audinate. It is the leading provider of professional digital audio networking technologies globally.
Audinate's Dante platform distributes digital audio signals over computer networks. It has been designed to bring the benefits of IT networking to the professional AV industry. The company notes that using Dante-enabled products ensures interoperability between audio devices and allows end users to enjoy high quality, flexible solutions.
The quality of Dante is ahead of the competition by such a distance that there are now more than 3,000 different products incorporating Dante for audio-over-IP connectivity. This makes it the protocol of choice in more than 91% of the networked audio products currently available.
Analysts at UBS are positive on the company and currently have a buy rating and $10.40 price target on its shares. This compares to the latest Audinate share price of $8.28.
Volpara Health Technologies Ltd (ASX: VHT)
Another small cap ASX share to watch is Volpara Health Technologies. It is a healthcare technology company that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer.
Volpara has been growing its annualised recurring revenue (ARR) at a quick rate for a number of years and this continued in FY 2021 despite the pandemic.
Looking ahead, thanks to acquisitions and its growing product suite, the company appears well-positioned to continue its strong growth in the years to come. Especially considering its ever-improving average revenue per user metric.
Management certainly appears to believe this is the case. It estimates that it has a US$750 million ARR opportunity in breast cancer screening alone. This gives it a significant runway for growth over the next decade.
Morgans is a fan of Volpara and has an add rating and $1.87 price target on the company's shares. This compares to the current Volpara share price of $1.17.
