At the small end of the Australian share market, there are a number of companies with the potential to grow materially in the future.
Two that investors may want to get better acquainted with are listed below. Here's what you need to know about them:
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Alcidion Group Ltd (ASX: ALC)
The first small cap ASX share to watch is this growing informatics solutions company. It is the company behind healthcare software products Miya, Patientrack and Smartpage.
The increasingly popular Patientrack product helps clinicians know a patient's status in real-time. It uses predictive algorithms to support time-critical care, allowing doctors to intervene and prevent patient deterioration faster than ever before.
Thanks to its software, the shift to a paperless environment in the healthcare sector, and a number of favourable industry tailwinds, Alcidion has been tipped to grow strongly in the coming years.
The team at Bell Potter, for example, are confident in the company's outlook. As a result, the broker has a buy rating and 45 cents price target on its shares.
Whispir Ltd (ASX: WSP)
Another small cap ASX share to watch is Whispir. It is a software-as-a-service company that provides a communications workflow platform automating interactions between organisations and people.
The company notes that its offering enables organisations to improve their communications through automated workflows to ensure stakeholders receive accurate, timely, useful and actionable insights. Demand has been growing strongly, leading to stellar recurring revenue growth.
For example, in August the company released its full year results and revealed a 28.5% increase in annualised recurring revenue to $53.6 million.
Positively, this is still only a small fraction of its total addressable market which is estimated to be US$8 billion.
The team at Ord Minnett are very positive on Whispir's future. So much so, last month they put a buy rating and lofty $3.89 price target on its shares. This is materially higher than where the Whispir share price currently trades.
