3 small-cap ASX shares to buy in December

These small caps have been given the thumbs up by analysts.

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Are you looking for some ASX small-cap shares to add to your portfolio in December? Then take a look at the three listed below.

Here's why they could be worth considering for investors with a high-risk tolerance:

Arafura Rare Earths Ltd (ASX: ARU)

The first small-cap ASX share to look at is Arafura Rare Earths. It is the owner of the Nolans Project, which aims to supply a significant proportion of the world's neodymium and praseodymium (NdPr) demand in the future. Bell Potter believes the company has a bright future. It notes that "rare earths projects such as Nolans should continue to be supported by growing demand from the electric vehicle and wind turbine sectors in combination with a need to de-risk current supply concentration in China."

Bell Potter has a speculative buy rating and 65 cents price target on Arafura's shares.

Catapult Group International Ltd (ASX: CAT)

Another small-cap ASX share to look at is Catapult. It is a global sports technology company providing elite sporting organisations with real time data and analytics to monitor and measure athletes. It counts many of the most successful sports teams around the globe as customers.

Bell Potter is also a fan of Catapult, particularly now it has turned EBITDA profitable. In addition, the broker is expecting "a return to double digit revenue growth in FY24."

The broker has a buy rating and a $1.50 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

A third small-cap ASX share that could be a buy is Readytech. It is a leading provider of mission-critical software-as-a-service (SaaS) solutions for the education, workforce management, government and justice sectors.

Goldman Sachs is a fan of the company. It expects Readytech to "deliver mid-teens organic growth at an expanding profit margin through the cycle."

Goldman has a buy rating and a $4.50 price target on its shares.

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. has positions in and has recommended Catapult Group International, Goldman Sachs Group, and ReadyTech. The Motley Fool Australia has recommended Catapult Group International and ReadyTech. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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