3 exciting small cap ASX shares to watch

Check out these highly rated small cap ASX shares…

If you're wanting to invest in the small side of the Australian share market, then the three small caps listed below could be worth a closer look.

All three have been tipped for big things in the future. Here's why these small cap ASX shares could be worth adding to your watchlist:

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Image source: Getty Images

Alcidion Group Ltd (ASX: ALC)

The first small cap ASX share to watch is this growing informatics solutions company. Alcidion is the company behind healthcare software products Miya, Patientrack and Smartpage. These products are becoming increasingly popular with healthcare institutions and it isn't hard to see why. Patientrack, for example, helps clinicians know a patient's status in real-time. It uses predictive algorithms to support time-critical care, allowing doctors to intervene and prevent patient deterioration faster than ever before. Looking ahead, Alcidion appears well-placed for growth in the future thanks to the shift to a paperless environment in the healthcare sector and a number of favourable industry tailwinds.

Bell Potter currently has a buy rating and 45 cents price target on Alcidion's shares.

BlueBet Holdings Ltd (ASX: BBT)

Another small cap ASX share to watch is BlueBet. It is an online sports betting company that allows users to bet on all Australian and international racing and sports. BlueBet has been growing very strongly thanks to the increasing popularity of sports betting and the shift away from betting houses. The good news is that management is confident that this trend can continue. It also believes it is well positioned to substantially grow its modest share of the market in Australia. In addition, the company is in the process of expanding into the massive US market.

Morgans is bullish on BlueBet and has an add rating and $2.60 price target on its shares.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a growing MedTech software as a service company and the provider of breast imaging analytics and analysis products. Its products improve clinical decision-making and support the early detection of breast cancer. Demand has been growing strongly in recent years and has continued in FY 2022. During the second quarter, the company reported a 63% increase in subscription based revenue. This took its annualised recurring revenue to US$20.4 million at the end of the period. This is still only a fraction of its US$750 million addressable market in just breast cancer screening.

Morgans currently has an add rating and $1.87 price target on the company's shares.

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 and BlueBet Holdings 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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