Shaw and Partners has released research notes on two ASX small caps that it believes can deliver substantial returns over the next year.
Let's have a look at who they like.
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Objective Corp Ltd (ASX: OCL)
The Objective Corp share price fell sharply on the release of the company's FY26 results, but Shaw and Partners believes this was an over-reaction.
The company reported revenue of $134.7 million, up 9%, and adjusted EBITDA of $51.5 million, up 11%.
It also increased its dividend from 22 cents per share to 26 cents.
The company said regarding its results:
During FY2026, 100% of our software revenue was contracted under a subscription model and recurring revenue represented 86% of total revenue from customers. The Annualised Recurring Revenue (ARR) balance at 30 June 2026 decreased by 2% to $117.3 million ($120.2 million at 30 June 2025). Information Intelligence ARR decreased by 5% to $81.0 million (FY2025: $85.1 million); Regulatory Solutions ARR increased by 4% to $17.6 million (FY2025: $16.9 million); Planning and Building ARR increased by 3% to $18.7 million (FY2025: $18.2 million).
The company said it had a strong balance sheet, which "provides significant capacity to further pursue investment opportunities that enhance returns for stakeholders''.
Shaw and Partners said Objective Corp delivered solid underlying growth despite the loss of a defence contract.
They said the company was now poised for growth:
Strategically, years of R&D investment have delivered a mature product portfolio, with the focus now shifting toward sales and monetisation. FY27 establishes a new earnings base, with sales execution key to re-accelerating growth. Reiterate Buy.
Shaw and Partners has a price target of $9.50 for Objective Corp, compared with $6.40 at the time of writing.
Humm Group Ltd (ASX: HUM)
This finance and credit card company's shares have been on a slide in recent months, and are now down 35% over the past 12 months.
Humm Group's full-year net profit fell from $39.6 million to $15.7 million, but Shaw and Partners said this was largely due to one-off costs associated with corporate activity.
They said they expected net profit to "materially recover" this financial year, and noted that the company was trading at a substantial discount to the small-cap financial sector.
The company itself said re the outlook:
Humm Group enters FY27 with a clear focus on disciplined execution, with the final stages of platform transformation expected to create a shift in focus from building foundations, to realising benefits. This focus will enable meaningful and cost-effective scale in the consumer portfolios, accelerate AI adoption, simplify and automate processes and deliver better experiences for customers, merchants and employees.
Shaw and Partners has a price target of 80 cents on Humm Group shares compared to 42.25 cents at the time of writing.
