Are you looking for some small cap shares to add to your portfolio? If you are, then have a look at the two listed below.
Here's why they analysts are bullish on these small caps:
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Airtasker Ltd (ASX: ART)
The first small cap ASX share to consider is this online marketplace provider for local services.
It could be a top option thanks to its material growth opportunity both at home and overseas. For example, management estimates that it has a total addressable market (TAM) of $600 billion across Australia, the UK, and the US.
Morgans remains a big fan of Airtasker. At the end of last month, the broker retained its add rating on the company's shares with a price target of $1.05. This implies potential upside of 160% for investors based on the current Airtasker share price of 40.5 cents. It commented:
Whilst acknowledging the current volatile market conditions and broader sector sentiment, we continue to remain attracted to the strong growth opportunity ahead for ART, predicated on the company successfully implementing its strategy of penetrating the prodigious TAM opportunity both domestically and offshore.
Serko Ltd (ASX: SKO)
Another small cap ASX share to look at is this online travel booking and expense management software provider.
Serko was hit hard by the pandemic but is bouncing back strongly now. And with the company well-funded, it is now able to focus on its global marketplace strategy. This strategy is aiming to transform the company from an online booking tool into a distributed marketplace. This will also be supported by its game-changing deal with Booking.com.
Citi is positive on Serko. It recently retained its buy rating and $5.10 price target on the company's shares. This suggests potential upside of 57% from the current Serko share price of $3.25. The broker commented:
We continue to see a high degree of uncertainty in terms of forecasting the Booking.com for Business in the near term, however expect the expansion into unmanaged travel in partnership with Booking.com to drive solid earnings growth over the medium term and also help the core business.
