3 little known ASX growth shares to buy
Tristan Harrison | February 21, 2021 9:37am |
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There are a number of smaller businesses on the ASX that aren’t well known but may be able to make good returns for investors.
It is usually easier for a business to double from $500 million to $1 billion than it is to go from $5 billion to $10 billion because of the difficulty of doubling bigger and bigger numbers.
That’s why these ASX growth shares could be worth thinking about:
This business is a global retailer of plus-size clothes, footwear and accessories for women. Not only does City Chic have a large network of retail stores across Australia and New Zealand, but it also has wholesale agreements in the northern hemisphere and a website in the US.
2 exciting small cap ASX shares to buy
Tristan Harrison | January 16, 2021 11:45am |
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Some small cap ASX shares may be able to make good returns over the longer-term.
There are smaller businesses that have interesting characteristics, which may be of interest to some investors:
Volpara is a medical technology business. Its main service is providing software to help detect breast cancer early on by increasing the quality of screening using AI.
The small cap ASX share reported its FY21 half-year result a couple of months ago. Subscription revenue went up 71% to NZ$8.8 million, though total revenue only grew by 38% to NZ$9.5 million. Annual recurring revenue (ARR) went up from NZ$18 million to NZ$19.9 million.
3 small cap ASX shares to buy for 2021
Tristan Harrison | December 31, 2020 4:19pm |
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There are some small cap ASX shares that may be able to generate good returns in 2021.
Identifying a business that’s earlier on in its growth journey may mean it’s possible to capture more capital growth.
Here are three smaller businesses with growth potential:
City Chic is a retail ASX share that sells plus-size clothing, footwear and accessories to women.
It adapted to COVID-19 conditions by ramping up its online sales, which grew 113.5% in FY20 and represented 65% of total sales. Fund manager Chris Prunty from QVG Capital thinks that the e-commerce theme will continue to grow after COVID-19 has passed. For a business like City Chic, the small cap ASX share’s ability to sell products online underlines its ability to build a market-leading position for itself.
Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:
According to a note out of
Citi, its analysts have retained their
buy rating and lifted the price target on this fashion retailer’s shares to $4.00. This follows the announcement of the acquisition of UK-based plus-sized women’s fashion retailer Evans this week. The broker is expecting the acquisition to be meaningfully accretive to earnings from next year and suspects it could help drive margin expansion. The City Chic share price is changing hands for $3.79 this afternoon.