Are you looking for some small cap shares? Then have a look at the ones listed below.
Both these ASX shares have been named as buys by analysts. Here’s what they are saying about them:
Bigtincan Holdings Ltd (ASX: BTH)
The first small cap to look at is Bigtincan. It is a growing sales enablement platform provider that allows users to drive the sales process with high quality sales content anywhere, anytime, and on any device.
Demand for its offering has been growing strongly in recent years, underpinning strong recurring revenue growth in recent years. Pleasingly, this is expected to continue in FY 2022. For example, thanks to a combination of organic growth and the recent acquisition of Brainshark, management is guiding to a 124% year on year increase in annualised recurring revenue in FY 2022.
Analysts at Morgan Stanley are positive on Bigtincan. So much so, they have an overweight rating and $2.10 price target on its shares. This is almost double the current Bigtincan share price of $1.07.
Catapult Group International Ltd (ASX: CAT)
Another small cap to look at is Catapult. It is a global sports analytics company that provides elite sporting organisations and athletes with real time data and analytics to monitor and measure athletes.
Catapult’s products are used by many of the biggest sports teams and organisations across the world. This includes Chelsea FC, Cricket Australia, the English Cricket Board, the New York Knicks, and the Wallabies, to name just a handful.
Although demand softened during the worst of the pandemic, it has rebounded strongly since then. This led to Catapult reporting a 13% increase in revenue to $37.5 million during the first half of FY 2022. This was driven by 29% growth in subscription revenue, which reflects Catapult’s strategic shift to a focus on high quality recurring revenue SaaS deals. It also boasts an ultra low churn rate, which demonstrates the stickiness of its products.
Earlier this month, the team at Morgans put an add rating and $2.45 price target on Catapult’s shares. This is notably higher than the current Catapult share price of $1.52.