As well as being home to countless blue chip shares, the Australian share market is home to a good number of promising small caps.
Three small cap shares that could be worth adding to your watchlist are listed below. Here's what you need to know about them:
Adore Beauty Group Limited (ASX: ABY)
The first small cap share to look at is Australia's leading online beauty retailer, Adore Beauty. Although the company has come along way since being founded in a Melbourne garage in 1999, it still only has a modest slice of the Australian beauty and personal care market. This market is estimated to be worth $11.2 billion a year at present, which gives Adore Beauty a long runway for growth. Especially given the structural shift online and its growing customer base, which is approaching 1 million.
UBS remains positive on Adore Beauty. It recently retained its buy rating with a $4.70 price target.
Avita Medical Ltd (ASX: AVH)
Another small cap ASX share to look at is Avita Medical. It is a global regenerative medicine company best known for its Recell system. This is a spray-on skin treatment used for burns victims. It is also looking to use its system to treat vitiligo and is working on an interesting project with Houston Methodist Research Institute. That project is essentially looking for the fountain of youth by finding a way to reverse cellular ageing.
Bell Potter is positive on the company. It has a speculative buy rating and $4.60 price target on its shares.
Mach7 Technologies Ltd (ASX: M7T)
A final small cap ASX share to watch is Mach7. It is a medical imaging data management solutions provider that allows users to create a clear and complete view of the patient. Operators then use this to help them inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. It appears well-placed for the future, particularly given how demand for this type of software continues to grow thanks to industry tailwinds such as telehealth.
Morgans is a fan of the company. It currently has an add rating and $1.55 price target on the company's shares.
