If you're a fan of small cap ASX shares, then you may want to add the two shares listed below to your watch list.
Here's what you need to know about these growing small cap ASX shares:
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PlaySide Studios Limited (ASX: PLY)
The first small cap to watch is PlaySide Studios. It is one of the largest independent video game developers in Australia. At present, the company's portfolio comprises 50+ titles that are delivered across four platforms – mobile, virtual reality, augmented reality, and PC. Among these titles are games developed in collaboration with studios such as Disney, Pixar, Warner Bros, and Nickelodeon. PlaySide has also recently announced promising deals with games publishing giant 2K Games and gaming influencer company One True King that could be a big boost to its growth in the coming years. Management estimates that it has a US$159 billion global addressable market to grow into over the next decade.
Canaccord Genuity currently has a buy rating and $1.00 price target on its shares.
Serko Ltd (ASX: SKO)
Another small cap to watch is Serko. It is the online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. The Zeno Travel platform provides artificial intelligence-powered end-to-end travel itineraries, cost control and travel policy compliance to corporate customers. Whereas the Zeno Expense platform allows users to automate and streamline the expense administration function, identify out-of-policy expense claims, and prevent fraud. While demand for its offering has suffered during the pandemic, demand has been rebounding. For example, Serko reported an 81% jump in operating revenue to NZ$9.2 million during the first half of FY 2022. The good news is that the second half should be boosted by the Booking.com deal, which has seen 300,000 business customers migrated to the Zeno platform.
Ord Minnett has a buy rating and $8.10 price target on Serko's shares.
