3 small cap ASX shares analysts rate highly

Analysts are fans of these small caps right now…

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Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

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

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

Audinate Group Limited (ASX: AD8)

The first small cap ASX share to look at is Audinate. It is the leading digital audio-visual networking technologies provider behind the Dante audio over IP networking solution. Management notes that Dante is the evolution of AV systems, converging all previous connection types into one. The solution is the clear industry leader, with the number of Dante enabled products manufactured by its customers eight times greater than its nearest rival.

UBS is a fan of the company. It currently has a buy rating and $11.75 price target on Audinate’s shares.

Bigtincan Holdings Ltd (ASX: BTH)

A second small cap to look at is Bigtincan. It 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 representatives to more effectively engage with customers. Bigtincan’s recurring revenues have been growing strongly in recent years but are still only scratching at the surface of a huge global market opportunity.

Morgan Stanley is positive on the company. It currently has an overweight rating and $2.10 price target on its shares.

Booktopia Group Ltd (ASX: BKG)

A final small cap ASX share to watch is Booktopia. It is an online book retailer which really caught the eye in FY 2021. For the 12 months ended 30 June, the company reported a 35% increase in revenue to $223.9 million and a 125% jump in EBITDA to $13.6 million. This was driven by record shipments of 8.2 million units, which was underpinned by its new distribution centre and strong demand. Pleasingly, it has started FY 2022 in a positive fashion. Management advised that sales in July and August were higher than the prior corresponding period.

This went down well with Morgans. In response, the broker retained its add rating and lifted its price target to $3.72.

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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 AUDINATEGL FPO and BIGTINCAN FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and BIGTINCAN 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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