Are you interested in small cap ASX shares? If you are, then you may want to look at the ones listed below.
Both these small cap ASX shares have been given buy ratings and are tipped for big things in the future. Here's why they should be on your watchlist:
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Adore Beauty Group Limited (ASX: ABY)
The first small cap to watch is Adore Beauty. It operates a beauty-focused integrated content, marketing, and ecommerce platform that partners with a broad and diverse portfolio of brands and products.
This strategy has worked wonders and led to Adore Beauty's active customers growing strongly to almost 1 million, which is underpinning strong sales growth.
Pleasingly, while this is a large number, it is still only a small portion of an Australian beauty market worth $11 billion a year at present. This gives Adore Beauty a long runway for growth over the next decade.
UBS is a fan of the company. It currently has a buy rating and $6.00 price target on its shares.
BlueBet Holdings Ltd (ASX: BBT)
Another small cap ASX share to watch carefully is this mobile-first online wagering provider.
BlueBet allows users to bet on all Australian and international racing and sports through its website and app. Thanks to the increasing popularity of mobile sports betting, its sales and customer numbers have been growing strongly in recent years.
Pleasingly, though, BlueBet is still scratching at the surface of a huge market opportunity in both Australia and the United States. And while the latter market will not be easy to crack, BlueBet is forming partnerships with industry players in an attempt to gain access.
The team at Morgans is very positive on BlueBet. The broker currently has add rating and lofty $2.60 price target on its shares.
Morgans recently commented: "We remain attracted to BBT's opportunity to increase its Australian market share (currently just ~1.2%) and significant, long-term growth potential from its US market entry."
