Analysts are tipping huge gains for these small cap ASX shares

If you’re interested in adding some small caps to your portfolio, then you may want to check out the ones …

| More on:
Man presses green buy button and red sell button on a graph.

Image source: Getty Images

If you’re interested in adding some small caps to your portfolio, then you may want to check out the ones listed below.

These small cap shares are rated highly by analysts and have been given buy ratings recently. Here’s what you need to know about them:

Australian Clinical Labs Ltd (ASX: ACL)

Australian Clinical Labs could be a small cap share to buy. It is a leading Australian private provider of pathology services through 86 NATA accredited laboratories.

From these sites, the company performs a diverse range of pathology tests each year for a range of clients. These include doctors, specialists, patients, hospitals and corporate clients.

Outside the current increased demand for its services from COVID-19 testing, Goldman Sachs believes Australian Clinical Labs is well-placed for growth over the long term. This is due to demographic volume drivers, the prevalence of chronic diseases, and the growing trend for doctors to use pathology services to recognise, prevent or treat diseases earlier.

Goldman Sachs currently has a buy rating and $5.90 price target on the company’s shares. This compares to the most recent Australian Clinical Labs share price of $4.34.

Booktopia Group Ltd (ASX: BKG)

Booktopia could be another small cap ASX share to buy. It is an online book retailer which has been growing at a very strong rate in recent years. For example, in FY 2021, Booktopia reported a 26% increase in shipments to 8.2 million units and a 19% lift in active customers to 1.8 million. This underpinned very strong revenue growth again.

The good news is that with the shift to online shopping continuing and its new distribution centre able to ship more books that ever before, the future looks bright for Booktopia.

Analysts at Morgans are very positive on the company’s outlook. They believe Booktopia is well-placed to win market share and continue its growth.

Morgans currently has an add rating and $3.72 price target on its shares. This compares to the most recent Booktopia share price of $1.99.

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 Booktopia Group Limited. The Motley Fool Australia has recommended Australian Clinical Labs Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Small Cap Shares