If you are a fan of small cap ASX shares, then you will be pleased to know that analysts have recently named a number as buys.
Here's what you need to know about these shares from the small side of the market:
AVITA Medical Inc (ASX: AVH)
The first small cap ASX share that could be a buy is AVITA Medical. It is a regenerative medicine company with a focus on wound care management and skin restoration with its RECELL technology.
The company notes that RECELL harnesses the regenerative properties of a patient's own skin to create spray-on skin cells, delivering a transformative solution at the point-of-care. Management believes its technology serves as the catalyst for a new treatment paradigm enabling improved clinical outcomes.
Morgans is very positive on the company. This is partly due to the company recently expanding its "indication into full thickness skin defects and Vitiligo (US$5bn TAM)." It also thinks that its automated device RECELL Go "will be a meaningful driver of rapid adoption by clinicians."
The broker has an add rating and $4.56 price target on its shares.
Bluebet Holdings Ltd (ASX: BBT)
A second small cap ASX share that could be a buy is Bluebet. It is a sports betting company which recently completed a merger with betr.
Morgans is also positive on the company and believes its shares are undervalued at current levels. Particularly given its recent quarterly update, which it notes saw Bluebet report a "strong performance despite not yet fully benefiting from the impact of the betr migration."
In addition, it highlights that its net win margin of 9.7% exceeded the market's and its own expectations. And, "impressively, the margin reflects the company's rapid success in monetising betr's customer base within a short timeframe."
Morgans currently has an add rating and 33 cents price target on its shares.
Readytech Holdings Ltd (ASX: RDY)
Another small cap ASX share that has been named as a buy is Readytech.
It is a technology company that owns a portfolio of enterprise software businesses across several market verticals. This includes higher education and local government.
Goldman Sachs is a fan of the company. It likes Readytech due to its growing levels of recurring revenue and low churn levels. The broker expects this to help the company "continue to grow mid-teens organically while making accretive acquisitions."
The broker currently has a buy rating and $4.25 price target on its shares.
