Morgans names 7 small-cap ASX shares to buy for earnings season

Here are a number of small caps that the broker has given the thumbs up to this week.

A man holding a cup of coffee puts his thumb up and smiles while at 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

Analysts at Morgans have been running the rule over the market ahead of earnings season next month.

One area of the ASX that the broker has been looking at is the small cap space.

The good news for investors that dabble with the small side of town is that its analysts believe that the tide is turning for small cap ASX shares, making now a great time to make some investments.

The broker commented:

Small-caps continue to look constructive. Small-caps have historically bounced hardest upon confirmation of a flattening-out in the rates cycle. Several ingredients remain in place supporting a rebound in this space (rates, trading/fundamentals, sentiment/positioning). We think the tide is turning for small-caps, and now is an opportune time to build exposure to forgotten small-caps.

Which small cap ASX shares?

Morgans has named a total of seven forgotten small cap ASX shares that it likes for earnings season. They are as follows:

Clinuvel Pharmaceuticals Limited (ASX: CUV)

Morgans has an add rating and $22.00 price target on this biopharmaceutical company's shares.

Credit Corp Group Limited (ASX: CCP)

The broker has an add rating and $18.75 price target on this debt collector's shares.

DGL Group (ASX: DGL)

This industrial solutions company's shares have an add rating and $1.05 price target on them.

Helloworld Travel Ltd (ASX: HLO)

Its analysts have an add rating and $4.26 price target on this travel company's shares.

IPH Ltd (ASX: IPH)

This intellectual property services company's shares have an add rating and $8.15 price target on them.

Veem Ltd (ASX: VEE)

Veem is a designer and manufacturer of disruptive, high-technology marine propulsion and stabilisation systems for the global luxury motor yacht, fast ferry, commercial workboat, and defence industries. Morgans' last rating on the company was an add rating and $1.00 price target.

Vulcan Steel Ltd (ASX: VSL)

Morgans has an add rating and $9.00 price target on this steel manufacturer's 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 Veem. The Motley Fool Australia has recommended IPH and Veem. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Small Cap Shares

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

Down 40% in 2024, why is this ASX small-cap stock rocketing 32% today?

This small cap is smelling like roses on Thursday.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Small Cap Shares

These small cap ASX shares could rise 35% to 75%

Analysts are tipping these shares to rise strongly from where they currently trade.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Small Cap Shares

ASX small-cap stock rockets 25% on 'another period of profitable growth'

Why is this small cap getting a lot of attention on Wednesday?

Read more »

Two kids in superhero capes.
Small Cap Shares

Are ASX small-cap shares back in vogue amid a big shift?

Could a rotation out of large-caps be underway?

Read more »

Three children wearing athletic short and singlets stand side by side on a running track wearing medals around their necks and standing with their hands on their hips.
Share Gainers

3 ASX small-cap shares that soared 250% to 675% in FY24

ASX small-cap shares can offer potentially higher price growth but typically involve more risk.

Read more »

A man in a business suit holding a baby conducts a task on his phone
Small Cap Shares

Why I'm bullish about this exciting ASX small-cap share

The foundations are compelling with this stock.

Read more »

The Two little girls smiling upside down on a bed.
Small Cap Shares

Is it time to jump back into ASX small-cap shares?

One fund manager has revealed why it could be time to invest in smaller stocks.

Read more »

three children wearing superhero costumes, complete with masks, pose with hands on hips wearing capes and sneakers on a running track.
Opinions

3 ASX small-cap shares I think have explosive growth potential

Here's my list of 3 ASX small-cap shares for growth.

Read more »