Investors that are looking for exposure to the small side of the market, might want to check out the small cap ASX shares listed below.
That's because they were recently named as buys by brokers and tipped to rise strongly from current levels. Here's what you need to know about them:
AVITA Medical Inc (ASX: AVH)
The team at Morgans thinks that this regenerative medicine company could be a small cap ASX share to buy right now.
The broker currently has a buy rating and $4.56 price target on its shares. This suggests that upside of 45% is possible for investors over the next 12 months.
Morgans rates the company highly. It highlights that its Recell wound repair product has a huge growth opportunity. It explains:
AVH is a regenerative medicine company focusing on the acute wound care market. It has recently expanded its indication into full thickness skin defects and Vitiligo (US$5bn TAM). The expanded indication in full thickness skin defects has the required reimbursement in place and sales have started.
Camplify Holdings Ltd (ASX: CHL)
Another ASX small cap share to look at is Camplify. It is a leading peer-to-peer digital marketplace platform operator connecting recreational vehicle (RV) owners with hirers.
Morgans is a fan of the company and has an add rating and $2.55 price target on its shares. This suggests that they could more than double in value from current levels.
The broker highlights the company's positive long term growth outlook. This is thanks to opportunity both at home and internationally. It said:
We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.
SRG Global Ltd (ASX: SRG)
Bell Potter says that SRG Global could be a top small cap ASX share for investors to buy.
The broker has a buy rating and $1.40 price target on its shares. This implies potential upside of 25% over the next 12 months.
It highlights that this diversified industrial services company has a strong growth potential yet trades on lower than average earnings multiples. It said:
SRG's short-to-medium term outlook is reinforced by Government-stimulated construction activity in the infrastructure and non-residential sectors, and increased development and sustained capital expenditures in the resources industry. SRG is expected to generate double digit earnings growth (11% p.a. over (FY25-27)) on a 12 mth fwd P/E of ~12x.
