If you're wanting to invest in the small side of the Australian share market, then the three small caps listed below could be worth a closer look.
All three have been given buy ratings and tipped for big things in the future. Here's what you need to know about them:
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Alcidion Group Ltd (ASX: ALC)
The first small cap ASX share that has been given a buy rating is Alcidion. It is a healthcare technology company behind a range of solutions including Patientrack. It helps clinicians know a patient's status in real-time. Patientrack uses predictive algorithms to support time-critical care, allowing doctors to intervene and prevent patient deterioration faster than ever before. Demand has been growing for its solutions from a range of international healthcare institutions, which has been underpinning strong revenue growth.
Bell Potter currently has a buy rating and 45 cents price target on Alcidion's shares.
Nitro Software Ltd (ASX: NTO)
Another small cap ASX share to look at is Nitro Software. It is the fast-growing document productivity software company behind the increasingly popular Nitro Productivity Suite. This suite provides integrated PDF productivity and electronic signature tools to businesses of all sizes. In addition, the company recently entered into an agreement to acquire Connective NV for €70 million (~A$110 million). Connective is Belgium's leading eSign software-as-a-service (SaaS) business, with a fast-growing market share in France and customers in 11 other European countries. This puts Nitro in a strong position for growth in a total addressable market estimated to be worth $28 billion per year.
Bell Potter is also very positive on Nitro Software. It currently has a buy rating and $4.50 price target on its shares.
Volpara Health Technologies Ltd (ASX: VHT)
A final small cap that is rated as a buy is Volpara. It is a provider of breast imaging analytics and analysis products that improve clinical decision-making and support the early detection of breast cancer. Demand for its offering has been growing strongly in recent years and has supported stellar revenue growth. This continued during the first half of FY 2022, with Volpara reporting subscription revenue growth of 35% to NZ$11.8 million. This is still only a fraction of its US$750 million addressable market in just breast cancer screening. Volpara is also now expanding into the US lung cancer screening market with its RevealDx and Riverain integrations.
Morgans currently has an add rating and $1.87 price target on the company's shares.
