2 small cap ASX shares that this broker rates as buys

These small cap shares could be going places…

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Are you interested in small cap shares? If you are, then you may want to look at the ones listed below.

Both these small cap ASX shares have been given buy ratings and are tipped for big things in the future. Here’s what you need to know:

Alcidion Group Ltd (ASX: ALC)

The first small cap share to watch is Alcidion. It is a growing healthcare technology company with a portfolio of clinical decision and support software products and services. These products aim to improve patient outcomes by supporting interoperability, allowing for improved communication and task management, and delivering critical clinical decision support at the point of care. Its two key products are MIYA and Smartpage.

Bell Potter is positive on the company and currently has a buy rating and 45 cents price target on its shares. It estimates that Alcidion currently has a realistic and addressable market worth ~$1 billion across ANZ, Europe, and Canada.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap ASX share to look at is Volpara Health Technologies. It is a healthcare technology company with a focus on improving the early detection of breast cancer with better quality screening using artificial intelligence. Volpara’s technology, which was developed at Oxford University, has been designed to provide objective data on breast tissue density. This is a key risk marker for breast cancer.

It has been growing its market share in the United States at a strong rate and appears well-placed to continue this trend in the future. This is thanks to the quality of its technology, recent acquisitions, and the increasing awareness of the importance of breast tissue density in the screening process.

The team at Bell Potter are positive on Volpara as well. Last week the broker put a buy rating and $1.60 price target on the company’s shares. It is expecting its annual recurring revenues to more than double between now and FY 2024.

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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 Alcidion Group Ltd and VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Alcidion Group 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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