2 growing small cap ASX shares to watch

Here are a couple of small caps to watch…

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Investing in the small side of the share market carries more risk than other areas. However, if your risk tolerance allows for it, having a bit of exposure to this side could be a good thing for a balanced portfolio given the potential returns on offer.

With that in mind, here are two small cap ASX shares that could be worth watching closely. Both have been tipped to climb notably higher from current levels. They are as follows:

Ai-Media Technologies Ltd (ASX: AIM)

The first small cap ASX share to watch is Ai-Media Technologies. It is a global media access provider with operations across the ANZ, North American, EMEA and Asia markets. The company’s cloud-based technology platform provides live and recorded captioning, transcription, subtitles, translation and speech analytics.

These services are in great demand from end users. As a result, at the last count, Ai-Media Technologies was delivering 7 million minutes of live and recorded media content, online events, and web streams each month. Bell Potter is positive on the company. It currently has a buy rating and $1.50 price target Ai-Media Technologies’ shares. This is more than double its current share price of 70 cents.

SILK Laser Australia Limited (ASX: SLA)

Another small cap ASX share to watch closely is SILK Laser. It is one of Australia’s largest specialist clinic networks, offering a range of nonsurgical aesthetic products and services. SILK’s five core offerings comprise laser hair removal, cosmetic injectables, skin treatments, body contouring and skincare products.

SILK has also been experiencing strong demand for its services, despite the pandemic. This has underpinned stellar sales and profit growth since its IPO. The good news is that management still sees significant room to expand its clinic over the next decade to drive further growth. Wilsons is bullish on SILK and has an overweight rating and $5.25 price target on its shares. This compares to the latest SILK share price of $4.21.

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