If you have a high tolerance for risk, then it could be worth looking at the ASX small-cap shares listed below.
That's because they have been rated as buys and tipped to climb meaningfully from current levels. Here's what analysts are saying about them:
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Janison Education Group Ltd (ASX: JAN)
Bell Potter is feeling positive about Janison and believes it is a small-cap ASX share to buy now. It operates in the online enterprise learning and digital assessment segments of the education technology sector.
The broker has been pleased with the company's transition towards providing standardised SaaS platforms. It commented:
JAN has continued to transition away from developing bespoke assessment software for large enterprises and towards providing standardised SaaS platforms, assessment content and delivering high-stakes, high-volume digital exams. As a result, the company has gained scale benefits from an improved customer and product mix and higher-margin, recurring contractual revenues. [..] We believe JAN remains well equipped to provide any digital infrastructure catch-up needed to facilitate a hybrid learning environment.
Bell Potter has a buy rating and 65 cents price target. This implies a potential upside of over 60% for investors.
Readytech Holdings Ltd (ASX: RDY)
Another small-cap ASX share that could be a buy is Readytech. Goldman Sachs is a fan of the provider of mission-critical software-as-a-service (SaaS) solutions for the education, workforce management, government and justice sectors.
The broker notes that these are defensive markets, which bodes well for the company in the tough economic environment. It also feels its shares are undervalued given its positive outlook. It said:
RDY appears to be making solid progress on its strategy to move upmarket and win larger deals contemporaneously with margin expansion, as evidenced by its solid FY24 guidance, however the market may await further proof points until fully crediting RDY with a multiple commensurate to its growth outlook and quality of underlying assets. The company continues to screen undervalued compared to ASX Software peers, trading at ~10x FY24 EV/EBITDA against a mid-to-high teens organic EBITDA growth outlook.
Goldman Sachs has a buy rating and a $4.50 price target on its shares. This suggests a potential upside of 24% from current levels.
