If you're interested in gaining exposure to the small side of the market, then you might want to look at the small cap ASX shares listed below.
Here's why these small cap ASX shares are ones to watch:
Ai-Media Technologies Ltd (ASX: AIM)
The first small cap to watch is Ai-Media Technologies. It is a global media access provider with operations across the ANZ, North American, EMEA and Asia markets
The company's cloud-based technology platform provides live and recorded captioning, transcription, subtitles, translation and speech analytics.
Bell Potter is positive on the company. It currently has a buy rating and $1.50 price target Ai-Media Technologies' shares. The broker was pleased with its performance in FY 2021 and remains positive on the future.
It commented: "We maintain our Buy recommendation and positive outlook on AIM. We remain attracted to AIM's long-term growth strategy driven by its ability to apply proprietary technology in providing high accuracy, near real-time voice transcription services."
Mydeal.Com Au Ltd (ASX: MYD)
Another small cap to watch is MyDeal. It is an online retail marketplace focused on home and lifestyle goods. As per the company's most recent update, MyDeal had more than 1,800 sellers on its platform with over 6 million product SKUs listed across over 2,000 categories.
This strong offering and the shift online helped drive a 111% increase in gross sales to $218.1 million and a 119% jump in gross profit to $33.3 million in FY 2021.
The team at Morgans is positive on the company's long term outlook. As a result, it currently has an add rating and 90 cents price target on its shares.
The broker said: "We don't expect MYD to turn a profit in the current year (we never did), as all this investment in growth comes at a cost. But, to us, this story is not about short-term profitability and dividends. It's about creating a market leading ecommerce platform that can be the foundation of substantial earnings growth. We appreciate this is not an investment that will appeal to everyone. But for those that want exposure to a high growth ecommerce opportunity with a strong balance sheet, we think MYD fits the bill."
