Goldman Sachs says these small cap ASX shares can double in value

Analysts say these small caps could have huge upside potential…

The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Two that analysts at Goldman Sachs believe have huge potential are listed below. Here's why the broker is tipping them to more than double in value over the next 12 months:

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face.

Image source: Getty Images

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX small cap share that Goldman is bullish on is Hipages.

It is a leading Australia-based online platform and software as a service (SaaS) provider that connects consumers with trusted tradies.

Goldman Sachs believes Hipages has a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia. It has previously likened the company to Carsales.Com Ltd (ASX: CAR) and REA Group Limited (ASX: REA) in their early days.

It said: "In our view, the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries."

Goldman has a buy rating and $3.60 price target on its shares. Based on the current Hipages share price of $1.34, this implies potential upside of 168% for investors.

Nitro Software Ltd (ASX: NTO)

Another small cap tipped to shine is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world with its increasingly popular Nitro Productivity Suite.

This suite provides businesses with integrated PDF productivity and electronic signature tools. A testament to the quality of its software is that a number of the largest companies in the world use it. This includes over half of the Fortune 500.

Goldman Sachs believes Nitro has enormous growth potential as a challenger in a US$34 billion total addressable market (TAM) across PDF, e-signing and workflows.

It said: "Nitro operates in large, underpenetrated markets supported by structural growth tailwinds including remote work, enterprise digitisation and e-signing adoption. We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro's current revenue base."

Goldman has a buy rating and $2.60 price target on its shares. Based on the latest Nitro share price of $1.23, this suggests potential upside of 111%.

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. owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Nitro Software 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

Small girl giving a fist bump with a piggy bank in front of her.
Small Cap Shares

An ASX small-cap share to buy for its bright future

Investors can get excited about this stock.

Read more »

Man with a surprised expression on his face as he looks at his computer screen.
Small Cap Shares

Could this exciting growth stock be set to triple? Morgans thinks it can

This stock is a must watch.

Read more »

Hand stacking increasing piles of rocks.
Small Cap Shares

Why investors should be targeting ASX mid-caps and ASX small-caps after earnings season: Expert

A new report suggests there is upside for smaller equities.

Read more »

A police officer points their detector at a speeding car.
Small Cap Shares

Why is this ASX small cap up 160% to get an ASX 'speeding ticket'?

Let's take a look.

Read more »

Five young boys wearing small caps sit on a bench together watching a baseball game.
Small Cap Shares

2 ASX small-cap shares to buy and 1 to sell: Experts

The ASX Small Ords Index is down 9% in 2026 versus a 2% bump for the broader ASX All Ords.

Read more »

$50 Australian dollar note on top of a plant pot.
Small Cap Shares

This profitable ASX small-cap just posted record results

This unglamorous operator is building a surprisingly attractive growth engine.

Read more »

Construction worker celebrates success in a tunnel.
Small Cap Shares

Can this ASX small-cap share price keep running into reporting season?

While most of the local share market has gone nowhere fast this year, one small cap has left the benchmark…

Read more »

A man surrounded by huge piles of paper looks through a magnifying glass at his computer screen.
Small Cap Shares

2 ASX small-caps with 40% upside

These two companies are worth monitoring.

Read more »