Experts name 2 exciting small cap ASX shares to buy with huge upside potential

Check out these small cap shares…

| More on:
A young women pumps her fists in excitement after seeing some good news on her laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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:

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.

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 Elmo Software and Serko Ltd. The Motley Fool Australia owns and has recommended Elmo Software. The Motley Fool Australia has recommended Serko Ltd. 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

Two kids in superhero capes.
Small Cap Shares

2 small-cap ASX shares I think are great buys right now

These small stocks have big potential, in my opinion.

Read more »

Man with rocket wings which have flames coming out of them.
Small Cap Shares

Guess which small cap ASX stock is rocketing 42% on Mercedes-Benz deal

This small cap is ending the week with a very strong gain.

Read more »

A young man working from home sits at his home office desk holding a cup of tea and looking out the window
Small Cap Shares

These small cap ASX shares could rise 25% to 100%

Analysts are tipping these small cap to rise strongly from current levels.

Read more »

A woman holds a tape measure against a wall painted with the word BIG, indicating a surge in gowth shares
Small Cap Shares

2 ASX shares on track for monster return potential

These ASX shares have a compelling future, in my view.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Small Cap Shares

Which small cap ASX stock is jumping 20% after receiving a takeover offer?

This tech stock could be heading to the NASDAQ after receiving a takeover offer.

Read more »

Blue % sign with white dollar signs.
Small Cap Shares

Buy these small cap ASX shares before interest rates fall

Analysts think these small caps could generate big returns.

Read more »

A woman sits in her home with chin resting on her hand and looking at her laptop computer with some reflection with an assortment of books and documents on her table.
Small Cap Shares

Why I think this ASX penny stock is a bargain at its 52-week low

Things be looking up soon for this underappreciated ASX share, in my view.

Read more »

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market
Small Cap Shares

More small cap ASX stocks to buy when interest rates fall

Bell Potter thinks these small caps could rally when interest rates fall.

Read more »