If you're interested in investing at the small side of the market, then you may want to look at the ASX shares below.

These small cap ASX shares have been rated as buys and tipped to have major upside potential in 2023. Here's what you need to know about them:

Catapult Group International Ltd (ASX: CAT)

The first small cap ASX share to look at is Catapult. It is a global sports technology company that provides elite sporting organisations with real time data and analytics to monitor and measure athletes. It has been growing its annualised contract value (ACV) at a solid rate in recent years. Pleasingly, this has continued in FY 2023 despite the tough economic environment. In November, it reported a 21% increase in ACV on a constant currency basis to US$70 million during the first half. Another positive was its record-level retention, with ACV churn at just 4%. Looking ahead, management expects its full year ACV growth to be at least 20% with ACV churn in the range of 4.5% to 6%.

The team at Canaccord Genuity appears to have been pleased with its performance. The broker currently has a buy rating and $1.50 price target on the company's shares. This compares to the latest Catapult share price of 72 cents.

Hipages Group Holdings Ltd (ASX: HPG)

A final ASX small cap share to look at is Hipages. It is a leading online platform provider that provides job leads to tradies from homeowners and organisations looking for qualified professionals. While the tough economic environment has stifled its growth in FY 2023, it is still growing a solid rate. First quarter revenue was up 8% over the prior corresponding period to $16.1 million. This was driven by an increase in average revenue per user, job volumes, and subscriptions.

Analysts at Goldman Sachs are very positive on the company due to their belief that the company can capture a significant portion of industry advertising spend in the future. In fact, the broker has likened Hipages to the early days of Carsales.com Ltd (ASX: CAR) and REA Group Limited (ASX: REA).

Goldman currently has a buy rating and $2.10 price target on its shares. This is more than double the current Hipages share price of 97.5 cents.

The post These exciting small cap ASX shares could double in 2023: analysts appeared first on The Motley Fool Australia.

While the recent market volatility has unfortunately put a lot of pressure on ASX shares, every cloud has a silver lining.

The silver lining on this occasion is the attractive prices that some shares have been left trading at.

Two beaten down ASX shares that could be in the buy zone now are listed below. Here's what analysts are saying:

Hipages Group Holdings Ltd (ASX: HPG)

The first beaten down ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider.

Hipages has been growing at a solid rate in recent years thanks to the increasing popularity of its platform which connects consumers with trusted tradies to simplify home improvement.

Despite this solid growth and its massive market opportunity, the Hipages share price is down a sizeable 66% since the start of the year.

Analysts at Goldman Sachs appears to see this as a buying opportunity for investors. Particularly given their belief that Hipages has a huge growth runway ahead as its ecosystem builds. In fact, the broker has likened the company to REA Group Limited (ASX: REA) in its early years. There is no higher praise.

Goldman currently has a buy rating and $2.20 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

Another beaten down ASX share to consider is this logistics solutions company.

WiseTech is the company behind the popular CargoWise One solution, which allows users to execute complex logistics transactions and manage freight operations from a single, easy to use platform.

Demand has been growing very strongly over the last decade, underpinning incredible sales and profit growth. And despite its outlook looking very positive thanks to its high quality platform, strong market position, and growing freight volumes globally, its shares are still down 16% since hitting a record high earlier this month.

The team at Morgan Stanley are likely to see this as a buying opportunity. The broker currently has an overweight rating and $62.00 price target on its shares.

The post Analysts say these beaten down ASX shares are buys appeared first on The Motley Fool Australia.

It's fair to say that investing in the small side of the share market carries more risk than other areas.

However, if your risk tolerance allows for it, having a bit of exposure to this side of the market could be a good thing for a balanced portfolio due to the potential returns on offer.

After all, if you can find a future mid or large cap whilst it is still a small cap, the returns could be incredible.

With that in mind, listed below are two small cap ASX shares that have been tipped as buys. They are as follows:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX small cap share to look at is Hipages. It is a leading online platform and software as a service (SaaS) provider that connects consumers with trusted tradies.

The Hipages platform helps tradies grow their business by providing job leads from homeowners and organisations looking for qualified professionals.

Goldman Sachs is a very big fan of Hipages and believes "HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia."

The broker currently has a buy rating and $2.20 price target on its shares.

Silk Laser Australia Limited (ASX: SLA)

Another small cap ASX share that has been tipped as a buy is Silk Laser.

It is one of Australia's largest specialist clinic networks. Silk offers a range of nonsurgical aesthetic products and services including laser hair removal, cosmetic injectables, skin treatments, body contouring, and skincare products.

Demand for Silk's services has been strong in recent years and continued in FY 2022. This and recent acquisitions helped the company deliver a 91% increase in sales to $162.7 million.

Pleasingly, management remains positive on the future and "expects to continue its growth trajectory in FY23."

This went down well with the team at Wilsons. In response to its results, the broker has put an overweight rating and $3.62 price target on the company's shares.

The post 2 growing small cap ASX shares analysts rate as buys appeared first on The Motley Fool Australia.

If you're looking for some options in the mid cap space, then you might want to check out the ones listed below.

Here's why analysts at Goldman Sachs recently named these ASX mid cap shares as buys:

Adairs Ltd (ASX: ADH)

This homewares retailer is a mid cap ASX share to buy according to Goldman Sachs. Its analysts are very positive on the company due to its loyal customer base and store expansion opportunity. The broker currently has a buy rating and $3.05 price target on its shares. It commented:

The core Adairs business has a highly loyal customer base, and ongoing store roll-out opportunity: ADH is has a strong brand presence across Australia, a highly engaged and loyal customer base (>1mn Linen Lover members), and ongoing opportunity to roll out new and upsized stores. […] Attractive valuation and high dividend yield: we view valuation as undemanding with ADH trading on 6.9x FY23E P/E

Hipages Group Holdings Ltd (ASX: HPG)

Another mid cap ASX share that Goldman Sachs rates highly is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider. The Hipages platform connects tradies with residential and commercial consumers, and also allows them to communicate and run general admin duties. Goldman sees it as a great long term option for investors. It currently has a buy rating and $2.20 price target on its shares. It commented:

Longer term, we believe HPG presents a compelling long growth opportunity as it builds out an essential ecosystem of services for tradies

Temple & Webster Group Ltd (ASX: TPW)

This online furniture retailer is another mid cap share to buy according to the broker. Goldman likes the company due to its leadership position in a market that is in the process of shifting online. The broker recently initiated coverage on the company's shares with a buy rating and $7.55 price target. It said:

We believe the business has a material runway for long-term growth, supported by a large and growing TAM driven by increasing e-commerce penetration which still lags other comparable markets (Aus 16% vs. UK/US 28%/25%), even after a large pull forward in online sales over the last 2-3 years. […] We believe TPW can deliver long term structural growth, despite a slowdown in the near term macro environment.

The post Goldman Sachs names 3 mid cap ASX shares to buy appeared first on The Motley Fool Australia.

If you're looking for new investment options at the small side of town, then the two ASX shares listed below could be worth considering.

Both are highly rated by analysts at Goldman Sachs and tipped to generate strong returns for investors.

Here's what the broker is saying about these small cap ASX shares:

Hipages Group Holdings Ltd (ASX: HPG)

The first small cap ASX share that Goldman Sachs is recommending to investors is Hipages.

It is a leading ANZ-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies.

Goldman Sachs is bullish on the company due to its belief that Hipages has strong medium term and long term growth potential. In respect to the form, Goldman is forecasting a 29% EBITDA compound annual growth rate (CAGR) for FY 2022 to FY 2025.

As for the long term, the broker commented:

Longer term, we believe HPG presents a compelling long growth opportunity as it builds out an essential ecosystem of services for tradies.

Goldman currently has a buy rating and $2.20 price target on the company's shares. Based on the current Hipages share price, this implies potential upside of over 70% for investors.

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share that Goldman Sachs is bullish on is Nitro. It is a document productivity software provider. It is aiming to drive digital transformation in organisations around the world across multiple industries with its core solution, the Nitro Productivity Suite.

Like Hipages, Goldman Sachs is forecasting very strong growth in the coming years and believes the company has a huge long term opportunity. It said:

We continue to see NTO as an undervalued global growth opportunity (>20% FY22-25E ARR CAGR) with high gross margins (~90%), a sound balance sheet (US$35mn net cash) and very little priced into the current valuation.

Even after a recent jump following a rejected takeover approach, Goldman sees plenty of value in the Nitro share price with its buy rating and $2.05 price target. This implies potential upside of 23% for investors from current levels.

The post Goldman Sachs names 2 exciting small cap ASX shares to buy appeared first on The Motley Fool Australia.

If you're looking for new investment options for next week, then the two ASX shares listed below could be worth considering.

Both are highly rated by analysts at Goldman Sachs and tipped to generate strong returns for investors. Here's what the broker is saying about these ASX shares:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX share that Goldman Sachs has just recommended investors buy is Hipages.

It is a leading ANZ-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies.

Goldman Sachs believes the company has a huge long term growth opportunity. It commented:

Longer term, we believe HPG presents a compelling long growth opportunity as it builds out an essential ecosystem of services for tradies.

In addition, the broker feels the Hipages share price is cheap considering its strong growth potential.

Valuation is supportive relative to global marketplace peers. HPG is trading on 13.9x FY23 EV/EBITDA vs. the median of marketplace peers trading on 15.3x. In our view this does not capture the medium term growth potential of the business: we forecast a 29% EBITDA CAGR (FY22-25E) vs. the median of peers at 14%; we also believe HPG can deliver solid operating leverage over the longer term as the business scales.

Goldman has a buy rating and $2.10 price target on the company's shares. This compares favourably to the current Hipages share price of $1.55.

IDP Education Ltd (ASX: IEL)

Another ASX share that the broker is tipping as a buy is IDP Education. It is a leading language testing and student placement provider.

Goldman was very impressed with the company's FY 2022 results and believes it shows that IDP is becoming the dominant force in English-speaking markets. It said:

We believe IEL's FY22 result reflected 1) operational excellence by managing costs whilst preparing capacity for a strong rebound of students into Australia; and 2) material progress towards becoming the dominant student placement provider into English-speaking markets, including leveraging technology to build a growing presence in the US.

As with Hipages, the broker feels that its shares are cheap considering its strong growth prospects.

IEL is trading c.40% below its 5-yr average P/E premium to the ASX200 Industrials with a forecast 37% FY22-25E EPS CAGR, we remain Buy-rated. We have upgraded EPS in FY23/FY24 by 1.7%/0.8% on the back of the stronger FY22 result, continued strong revenue growth and margin expansion. The balance sheet is in a resilient position with c.A$40mn of net cash to facilitate any bolt-on acquisitions or ramp up in organic investment in new offices and technology.

Goldman has retained its buy rating with an improved price target of $36.00. This compares to the latest IDP Education share price of $28.89.

The post Goldman Sachs names 2 ASX shares to buy right now appeared first on The Motley Fool Australia.

The Hipages Group Holdings Ltd (ASX: HPG) share price is falling today after the company released its results for the year ending 30 June (FY22).

Hipages shares were sinking by as much as 9% in early trading but have since partially recovered and are currently down 2.68% at $1.45 apiece.

Let's get the measuring tape out and see what unfolded in FY22 for the ASX-listed tradies services platform.

What did Hipages report for FY22?

• Revenue of $61.9 million, up 11% from $55.8 million in FY21
• Operating expenses of $51.1 million, up 15% from $44.3 million in FY21
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) before significant items of $10.7 million, down 8% from $11.7 million in FY21
• EBITDA margin of 17%, down from 21% in FY21
• Net loss after tax of $0.91 million, compared to a profit of $1.2 million in FY21

Across Hipages' key operations, it recorded higher monthly recurring revenue of 5% to $5.5 million. The number of jobs processed on the Hipages platform also lifted 6% to 1.63 million. The average revenue per user surged 11% to $1,707 compared to $1,536 in FY21.

The jump in operating expenses was due to greater investment in headcount and marketing. Marketing expenditure went up from $16 million to $18.8 million, in particular building its brand through the sponsorship of The Block.

In terms of employees, Hipages invested in its tech team to support growth and strategic execution.

Despite the reversal in Hipages' bottom line, it managed to improve its operating cash flow slightly from $12.5 million in FY21 to $12.7 million in FY22.

Hipages, which only listed in November 2020, appears to be in a sound financial position with cash and funds on deposit of $13.2 million and no debt.

What else occurred in FY22?

Hipages rolled out its job management solution, which plays a crucial role in transitioning to a software-as-a-service model. Tradie subscribers can now use the platform to schedule and personalise documentation with self-service options.

The tradie marketplace business also acquired Builderscrack, a similar business based in New Zealand. This enabled Hipages to achieve its goal of becoming the leading tradie marketplace across the trans-Tasman.

In addition, the company acquired a 25% stake in Bricks & Agent, one of Australia's leading property management technology platforms.

Management commentary

Speaking on the results, Hipages co-founder and CEO Roby Sharon-Zipser said:

In FY22 we faced a perfect storm for a marketplace business, with supply constricted by our tradie customers being unable to work due to COVID restrictions, then facing an unprecedented backlog of jobs driven by strong consumer demand.

In this environment, the strength of our subscription model shone through, enabling us to deliver growth in revenues, subscription tradies and ARPU, while executing our strategy and consolidating our position as the #1 online tradie marketplace in both Australia and New Zealand.

What's ahead for Hipages?

Management expects H1 FY23 revenue growth to stay in line with H2 FY22 and then accelerate to the mid-teens in the second half of FY23.

The EBITDA margin for FY23 is expected to be ahead of FY22.

The company advises there is a clear path towards free cash flow after recording positive free cash flow in its most recent quarter for FY22.

Commenting on the outlook, Sharon-Zipser said:

Looking ahead, I am very excited about the future for hipages Group. The countercyclical nature of our model means that we are well positioned to benefit from economic uncertainty in the near-term, while the opportunity in our existing markets and new adjacencies is significant.

Our efficient operating model gives us the confidence to continue to invest with a clear pathway to ongoing positive free cash flow. We remain highly focused on executing our strategy and investing to build the foundations for long-term profitable growth.

Hipages share price snapshot

The Hipages share price has copped a hammering alongside other ASX growth stocks over the last 12 months, dropping 52%. It has also fallen 62% this year to date. However, it has rallied in the past month, up 28%.

The S&P/ASX 200 Index (ASX: XJO) hasn't been as erratic, falling 6% in the past year and then climbing up 4% in the last month.

Hipages has a market capitalisation of around $195 million.

The post Hipages share price sinks as 'perfect storm' hits profit appeared first on The Motley Fool Australia.

Here's why the broker is bullish on these small cap shares:

Hipages Group Holdings Ltd (ASX: HPG)

The first small cap ASX share to consider is Hipages. It is a growing Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies.

Hipages recently released its fourth quarter update and delivered further solid growth. This went down well with Goldman Sachs, which believes the update points to a rebound in momentum after a tough period. It said:

We view HPG's beat in net new tradies (400 vs GSe of 300) as a positive sign that the momentum in the business is returning; a slowing economy and housing cycle should make the HPG platform incrementally more valuable as a source of work for tradies. We believe difficulties in new tradie additions and elevated churn in previous quarters reflected labour shortages across the industry and are confident a rebalancing in industry supply/demand will see these challenges resolve.

Outside this, the broker has previously suggested that "the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries."

Goldman has a buy rating and $2.55 price target on its shares. Based on the current Hipages share price of $1.40, this implies potential upside of 82% over the next 12 months.

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share that Goldman Sachs is bullish on is Nitro Software. It is a growing software company driving digital transformation in businesses around the world across multiple industries.

It is doing this through its key solution: the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers via a software-as-a-service and desktop-based software solution.

Nitro's shares were hammered last month after the company downgraded its guidance. While Goldman was disappointed with its update, it hasn't changed its view that this is a company with enormous long term growth potential.

Goldman explained:

We see the update as re-basing market expectations on NTO's growth outlook and highlighting the path to breakeven; however, we acknowledge that NTO will likely enter a "show me" phase where consecutive quarters of strong ARR performance are necessary to allay concerns over execution challenges. That said, we continue to see NTO as an undervalued global growth opportunity and highlight that the company now trades at ~12x FY24E EV/EBITDA on a capitalisation-adjusted basis.

The broker has a buy rating and $2.05 price target on its shares. Based on the current Nitro share price of $1.11, this implies potential upside of 85% over the next 12 months.

The post Goldman Sachs names 2 small cap ASX shares to buy with 80%+ upside appeared first on The Motley Fool Australia.

The Hipages Group Holdings Ltd (ASX: HPG) share price soared today amid the company's revenue leaping in the fourth quarter of FY22.

The Hipages share price surged 13.6% to finish the session at $1.295. For perspective, the S&P/ASX 200 Communication Services Index (ASX: XTJ) jumped 0.61% today.

So what did Hipages report today?

Hipages share price lifts amid 9% revenue boost

It was onwards and upwards for the Hipages share price today following the release of the company's Q4 FY22 activities report. Highlights included:

• Total revenue leapt 9% on the prior corresponding period (pcp) to $15.8 million
• Average annual revenue per unit (ARPU) surged 10% to $1,806
• Hipages Australia ARPU soared 16% to $1,904
• Subscription tradies leapt 11% on the pcp to 34,600
• $13.2 million cash and funds on deposit, no debt

What else did Hipages report?

Hipages is an online tradie marketplace and software-as-a-service (SaaS) provider that connects homeowners and companies with tradies.

Tradie registrations are rising and job numbers and churn are normalising following the COVID-19 pandemic, according to Hipages.

The company delivered free cash flow of $0.3 million in the fourth quarter, compared to an outflow of $2.5 million in the previous quarter.

Hipages highlighted its efficient business model is underpinning favourable free cash flow and balance sheet strength.

Management commentary

Commenting on the results that boosted the Hipages share price today, CEO and co-founder Roby Sharon-Zipser said:

For Hipages Group to continue to grow in such a challenging environment, while generating positive free cash flow and closely managing our expenses, highlights the power and resilience of our business model.

We will continue to invest in our products and technology and develop new expansionary services to enhance the customer experience and expand our addressable market.

Looking ahead

Hipages is expecting rising inflation and interest rates to bring "balance to marketplace". With this in mind, Hipages predicts tradies will be more reliant on the company's platform to source jobs.

On 25 August, Hipages will release its FY22 full-year results and update the market further on its outlook for FY23.

Hipages share price snapshot

The Hipages share price has dived 59% in the past year and more than 66% year to date.

However, in the past month, the company's share price has lifted almost 28%.

Hipages has a market capitalisation of about $169 million based on the current share price.

The post 'Power and resilience': Hipages share price leaps 14% on revenue boost appeared first on The Motley Fool Australia.

These small cap ASX shares have been rated as buys and tipped to have major upside potential. Here's what you need to know about them:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to look at is Adore Beauty. It is Australia's leading online beauty retailer. Despite its leadership position and almost 1 million customers, it is still only commanding a modest share of the $11 billion+ Australian beauty and personal care (BPC) market. This gives it a long growth runway as more and more sales shift online.

Morgan Stanley is a fan of the company. It has an overweight rating and $1.90 price target on its shares. This compares favourably to the current Adore Beauty share price of $1.11.

Catapult Group International Ltd (ASX: CAT)

Another small cap to look at is Catapult. It is a global sports technology company that provides elite sporting organisations with real time data and analytics to monitor and measure athletes. It has been growing its annual contract value (ACV) at a solid rate in recent years and expects this to continue in FY 2023. Management recently provided ACV growth guidance of between 20% to 25% with a low ACV churn level in the range of 4.5% to 6%.

The team at Jefferies currently has a buy rating and $2.00 price target on the company's shares. This compares to the latest Catapult share price of 99.5 cents.

Hipages Group Holdings Ltd (ASX: HPG)

A final ASX small cap share to look at is Hipages. It is a leading online platform provider that provides job leads to tradies from homeowners and organisations looking for qualified professionals. Analysts at Goldman Sachs are very positive on the company due to its belief that the company can capture a significant portion of industry advertising spend in the future. In fact, it has likened Hipages to the early days of Carsales.com Ltd (ASX: CAR) and REA Group Limited (ASX: REA).

Goldman Sachs has a buy rating and $2.50 price target on its shares. This is more than double the current Hipages share price of $1.10.

The post Analysts name 3 exciting small cap ASX shares with major upside potential appeared first on The Motley Fool Australia.

For example, the two small cap ASX shares listed below have fallen materially but still have incredibly bright futures. Here's why analysts are rating them as buys:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX small cap share to look at is Hipages. It is a leading online platform provider that provides job leads to tradies from homeowners and organisations looking for qualified professionals.

Goldman Sachs remains very positive on Hipages. This is due to its belief that it can capture a significant portion of industry advertising spend in the future. The broker has likened Hipages to the early days of Carsales.com Ltd (ASX: CAR) and REA Group Limited (ASX: REA). And looking at where these two companies are today, this is quite a statement.

The broker commented:

In our view, the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries. […] HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia.

Goldman Sachs has a buy rating and $2.50 price target on its shares.

Nitro Software Ltd (ASX: NTO)

Another small cap that is highly rated is Nitro Software. It is the document productivity software company behind the Nitro Productivity Suite that is driving digital transformation in organisations around the world.

Bell Potter is very positive on Nitro and notes that it continues to win market share due to its cost effective and easy deploy offerings. The broker also sees significant cross sell opportunities ahead.

It said:

The company has been successfully competing against and gaining market share from more entrenched providers in the market by providing a more cost effective and easier to deploy solution for both PDF productivity and electronic signing. […] The company now has a new area of growth, however, with the release of Nitro Sign as a standalone product so most customers will likely have to start paying more for using this product.

Bell Potter has a buy rating and $2.50 price target on its shares.

The post Analysts say these small cap ASX shares have huge potential appeared first on The Motley Fool Australia.

Here's why analysts at Goldman Sachs think these ASX mid cap shares could be in the buy zone right now:

 Hipages Group Holdings Ltd (ASX: HPG)

The first mid cap ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider.

The Hipages platform connects tradies with residential and commercial consumers, and also allows them to communicate and run general admin duties.

Goldman Sachs is positive on the company and sees it as a great long term option for investors. In response to recent share price weakness, it commented:

The fundamentals of this business remain very strong, and we see a number of drivers transforming this marketplace into an essential ecosystem for tradies over the long term.

Goldman Sachs has a buy rating and $2.50 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another mid cap share that Goldman likes is Readytech.

It owns a portfolio of enterprise software businesses across several market verticals. This includes higher education, HR/payroll, work pathways and local government.

Goldman notes that the company's competitive position is underpinned by its focus on market niches that are under-served by both large and small enterprise software competitors. It expects this to support strong growth over the medium term.

In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.

The broker also highlights the company's defensive qualities, which could be important if Australia falls into a recession.

RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company's earnings profile in an economic downturn.

Goldman has a buy rating and $4.60 price target on Readytech's shares.

The post Goldman Sachs names 2 mid cap ASX shares to buy appeared first on The Motley Fool Australia.

Among those attending were the three ASX shares listed below that Goldman believes would be great investment options right now.

Here's what it is saying about these shares:

Hipages Group Holdings Ltd (ASX: HPG)

Goldman Sachs is a big fan of this tradie platform provider. It is very positive on the ecosystem that the company is building and is tipping Hipages to win a significant market share in the future.

It said:

HPG is the leading trade services marketplace in Australia, connecting tradies with consumers for a range of home improvement jobs. The business is building out an ecosystem of adjacent services which will allow it to capture a greater share of tradie wallet, improve tradie retention and attract new tradies to the platform.

The broker currently has a buy rating and $2.50 price target on Hipages shares.

Lifestyle Communities Limited (ASX: LIC)

Another ASX share that Goldman is very positive on is Lifestyle Communities. The broker believes the retirement communities company is well-placed for growth thanks to a combination of Australia's ageing population and structural growth in the land lease model.

It explained:

The long-term outlook for Lifestyle Communities is very positive, in our view, with outperformance of the stock to be driven by: (1) a step up in the pace of land acquisitions, with industry build rates below demand from an ageing population; (2) structural growth in demand for land lease as the sector increases its penetration among retirees; (3) fundamental valuation support for cap rates.

Goldman Sachs has a conviction buy rating and $24.50 price target on the company's shares.

Readytech Holdings Ltd (ASX: RDY)

A final emerging ASX share that the broker thinks is a buy is Readytech. It is a growing provider of enterprise software to a number of markets.

The broker said:

RDY owns a portfolio of enterprise software businesses across several defensive market verticals including higher education, HR/payroll, work pathways and local government. RDY's competitive position is underpinned by its focus on market niches that are under-served by both large and small enterprise software competitors.

Goldman has a buy rating and $5.00 price target on Readytech's shares.

The post Broker names 3 emerging ASX shares to buy now appeared first on The Motley Fool Australia.

While this is disappointing, it could be an opportunity for patient, long-term focused investors.

Here are two small cap ASX shares that brokers rate as buys and are forecasting huge growth in the future:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX small cap share to look at is Hipages. It is a leading online platform provider that provides job leads to tradies from homeowners and organisations looking for qualified professionals.

In addition, the company's Tradiecore software helps tradies with job management, understanding profitability, and to create a smoother experience for both them and their customers.

Goldman Sachs is a very big fan of Hipages and believes it has enormous potential. In fact, the broker has likened the company to Carsales.com Ltd (ASX: CAR) and REA Group Limited (ASX: REA) in the early days.

The broker commented: "In our view, the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries. […] HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia."

The broker currently has a buy rating and $2.50 price target on its shares.

Nitro Software Ltd (ASX: NTO)

Another small cap that is highly rated is Nitro Software. It is the document productivity software company behind the Nitro Productivity Suite that is driving digital transformation in organisations around the world.

Bell Potter is very positive on Nitro. It currently has a buy rating and $2.50 price target on its shares.

It said: "[Nitro] Remains a key pick despite not reporting last month but looking value for a high quality, mid cap tech stock on FY22 EV/EBITDA and PE ratios of c.22x and 40x and we also expect a good 1HFY22 result in May with, in particular, strong SaaS ARR growth."

The post 2 highly rated small cap ASX shares that analysts say have huge potential appeared first on The Motley Fool Australia.

Here's why they could be worth getting better acquainted with:

Adore Beauty Group Limited (ASX: ABY)

The first small cap for investors to look at is Adore Beauty. It is a leading online retailer in the Australian beauty and personal care (BPC) market. It currently has almost 1 million active customers and generated revenue of $113.1 million from them during the first half of FY 2022, which was up 18% year on year. And while this is a large number, even if you annualise it, it is still only a 2% share of the $11.2 billion Australian BPC market. This gives Adore Beauty a significant runway for growth over the next decade.

UBS is a fan of the company and currently has a buy rating and $4.70 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Another small cap share that could be in the buy zone is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. At the last count, there were over 30,000 tradies using the platform, underpinning strong revenue growth.

Analysts at Goldman Sachs are confident that this strong growth will continue over the long term as it grows into its huge market. The broker has a buy rating and $3.60 price target on its shares.

Nitro Software Ltd (ASX: NTO)

A final small cap ASX share for investors to look at is fast-growing document productivity software company, Nitro. It is the company behind the increasingly popular Nitro Productivity Suite. It provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution. And while Nitro has been growing rapidly in recent years, it is still only scratching at the surface of a total addressable market estimated to be $28 billion per year.

The team at Goldman Sachs is also very bullish on Nitro. The broker currently has a buy rating and $4.50 price target on its shares.

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Two that analysts at Goldman Sachs believe have huge potential are listed below. Here's why the broker is tipping them to more than double in value over the next 12 months:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX small cap share that Goldman is bullish on is Hipages.

It is a leading Australia-based online platform and software as a service (SaaS) provider that connects consumers with trusted tradies.

Goldman Sachs believes Hipages has a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia. It has previously likened the company to Carsales.Com Ltd (ASX: CAR) and REA Group Limited (ASX: REA) in their early days.

It said: "In our view, the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries."

Goldman has a buy rating and $3.60 price target on its shares. Based on the current Hipages share price of $1.34, this implies potential upside of 168% for investors.

Nitro Software Ltd (ASX: NTO)

Another small cap tipped to shine is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world with its increasingly popular Nitro Productivity Suite.

This suite provides businesses with integrated PDF productivity and electronic signature tools. A testament to the quality of its software is that a number of the largest companies in the world use it. This includes over half of the Fortune 500.

Goldman Sachs believes Nitro has enormous growth potential as a challenger in a US$34 billion total addressable market (TAM) across PDF, e-signing and workflows.

It said: "Nitro operates in large, underpenetrated markets supported by structural growth tailwinds including remote work, enterprise digitisation and e-signing adoption. We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro's current revenue base."

Goldman has a buy rating and $2.60 price target on its shares. Based on the latest Nitro share price of $1.23, this suggests potential upside of 111%.

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Both of these shares are rated as buys by Goldman Sachs with huge upside potential over the next 12 months.

Here's what you need to know about these growing ASX shares:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX share to look at is Hipages. It is a leading online platform and software as a service (SaaS) provider that connects consumers with trusted tradies.

The Hipages platform helps tradies grow their business by providing job leads from homeowners and organisations looking for qualified professionals, while also enabling them to optimise their business through its SaaS product.

Goldman Sachs is a very big fan of Hipages. It believes that "HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia."

The broker currently has a buy rating and $3.60 price target on its shares. So, with the Hipages share price currently fetching $1.96, this suggests potential upside of 84% for investors over the next 12 months.

Nitro Software Ltd (ASX: NTO)

Another ASX share that is highly rated is Nitro Software. It is the document productivity software company behind the Nitro Productivity Suite that is aiming to drive digital transformation in organisations around the world.

Goldman Sachs is very positive on Nitro's long term growth potential. It said: "The market [is] currently pricing in long-term growth and margin assumptions that understate Nitro's potential, in our view. We are positive on Nitro's structural growth opportunity, reflected in our DCF scenario analysis implying an attractive asymmetric risk/reward skew."

It currently has a buy rating and $2.60 price target on its shares. Based on the current Nitro share price, this implies potential upside of 77% for investors.

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Here's what you need to know about these growth shares:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. It is a leading appliance manufacturer behind a range of brands that have been resonating extremely well with consumers for many years. Together with its ongoing investment in research and development and its global expansion, this has helped drive solid sales and earnings growth over the last decade. The good news is that this is that Morgans expects this to continue in the future. The broker currently has an add rating and $32.00 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Another ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service provider connecting consumers with trusted tradies. At the last count, there were over 30,000 tradies using Hipages' platform. This has been bolstered further with the recent acquisition of New Zealand rival Builderscrack. This gives Hipages access to a NZ$26 billion total addressable market and 4,000 active tradies. Goldman Sachs is a big fan of Hipages. It currently has a buy rating and $3.60 price target on its shares.

ResMed Inc. (ASX: RMD)

A final growth share to look at is ResMed. It is a sleep treatment focused medical device company which has been tipped to continue its growth long into the future. This is thanks to its world class products, significant and growing market opportunity, and its increasingly important digital platform. The latter has seen ResMed develop a patient-centric, connected-care digital platform which is addressing the main pinch points across the healthcare value chain. Morgans is very positive on the company's future. It has an add rating and $40.46 price target on its shares.

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Here's why analysts have rated them as buys:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX tech share to look at is Hipages. This leading Australian-based online platform and software as a service (SaaS) provider connects consumers with over 30,000 trusted tradies (and growing). It also provides tradies with the Tradiecore app, which is designed to ease the burden of everyday admin for trade businesses.

And while the first half of FY 2022 was disappointing due to the impact of lockdowns on its tradie subscriptions, Goldman Sachs remains positive and expects a big improvement in the second half.

It commented: "Despite near term volatility, nothing in this result changes our positive view on HPG: we believe HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia."

The broker currently has a buy rating and $3.60 price target on its shares.

NEXTDC Ltd (ASX: NXT)

Another tech share that could be a buy is NEXTDC. It is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud thanks to its world class network of centres and expansion into Asia and edge centres. Citi certainly expects this to be the case and is forecasting strong growth over the coming years.

The broker said: "NXT delivered a strong result with increasing utilisation of Gen 2 assets driving solid revenue growth and margin expansion, while revenue metrics improved HoH (revenue per MW up 7% HoH). While the current backlog underpins FY23e earnings, we have lowered our forecasts to reflect a slower ramp and conversion of the pipeline. We maintain our Buy call and see the conversion of Hyperscale customer commitments in Sydney and Melbourne as the next key catalyst."

Citi has a buy rating and $14.55 price target on NEXTDC's shares.

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Two that investors might want to get better acquainted with are listed below. Here's why they should be on your watchlist:

Hipages Group Holdings Ltd (ASX: HPG)

The first small cap ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. While its first half performance was a little on the disappointing side due to the negative impact of lockdowns on tradie subscriptions, management expects a swift rebound now restrictions are easing. In addition, its performance looks set to be boosted by a recent acquisition in New Zealand and partnership with leading property management platform Bricks + Agent.

Goldman Sachs also remains confident that a post-lockdown rebound is coming. After which, the broker believes Hipages is well-placed for strong long term growth as it grows its ecosystem into a huge addressable market. Goldman has a buy rating and $3.60 price target on its shares.

Whispir Ltd (ASX: WSP)

Another small cap ASX share to watch is Whispir. It is a global scale SaaS company that provides a communications workflow platform that automates interactions between organisations and people. Its products have been in-demand with businesses across the globe, which has underpinned strong recurring revenue growth in recent years. Pleasingly, this continued in the first half of FY 2022, with Whispir reporting annualised recurring revenue (ARR) of $60 million. This was up from $47.4 million or 26.6% from a year earlier but is still only scratching at the surface of its massive addressable market.

Shaw and Partners is positive on Whispir and was impressed with its first half performance. Its analysts currently have a buy rating and $4.85 price target on its shares.

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