Morgans names 2 exciting ASX small cap shares to buy

Here are a couple of exciting small cap shares…

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Yesterday I looked at two small cap ASX shares that are rated highly right now. You can read about them here.

If you’re a fan of small caps, then you’re in luck. Because those aren’t the only small cap shares that analysts are recommending.

Here are two small cap ASX shares tipped for big things by analysts at Morgans:

Airtasker Ltd (ASX: ART)

The first small cap ASX share to consider is this growing online marketplace for local services.

Analysts at Morgans are very positive on Airtasker due to their belief that the company has a very attractive business model.

The broker notes that the company’s product works for both sides of the marketplace, has attractive unit dynamics with healthy gross and contribution margins, an enormous total addressable market (TAM) in the early stages of ecommerce adoption, and a large international expansion opportunity. The latter provides the company with a long growth runway in the future.

In light of the above, Morgans has put an add rating and $1.27 price target on the company’s shares.

Step One Clothing Limited (ASX: STP)

Another small cap ASX share to watch is Step One. It is a recently listed direct-to-consumer online retailer of men’s underwear.

Earlier this month the company raised $81.3 million via its IPO. Some of these proceeds will be used to support the company’s growth strategies. This includes growing Step One’s existing customer base in Australia and the UK and investing in establishing a presence in the enormous US market.

Morgans is also feeling bullish on Step One. It recently initiated coverage on the company’s shares with an add rating and $3.20 price target. The broker likes Step One’s organically grown bamboo fabric design and notes that its sales have been growing rapidly in Australia and the UK.

Pleasingly, it doesn’t expect this growth to stop any time soon. Particularly given its recent launch in the US and the broker’s belief that Step One has the potential to go global.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

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. has recommended Airtasker Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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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