This week I looked at the small side of the market at stocks that have been tilted to have big futures.
Continuing on this theme, here are two other small caps to watch in 2021:
Cluey is a recently listed educational technology company. He landed on the boards of ASX in December after raising $ 30 million at $ 1.20 per share. This gave it a market cap of around $ 143.5 million. Since then, Cluey’s share price has fallen below its offer price and closed the year at $ 1.10.
Cluey describes itself as an innovative edtech company. It integrates personal tutoring with its scalable technology platforms and uses learning data and analytics to support the delivery of quality learning to thousands of Australian students.
The company recorded 52,700 learning sessions in the first quarter of fiscal 2021, up 338% from the same quarter of fiscal 2020 and 41% from the previous quarter. He expects this strong growth to continue and support a 218% increase in revenue to ~ $ 15.5 million in FY 2021.
Openpay is a small provider now paid later that has generated strong sales and strong customer growth in 2020. Last month, the company revealed that its total transaction value (TTV) in November reached a record 35 , $ 7 million. This was due to strong sales on Black Friday and Cyber Monday, the first being the best trading day in Openpay history.
Currently, the company operates in Australia and the UK, but recently announced plans to enter the lucrative US market. If this expansion is successful, it could give its TTV a major boost in 2021.
Shaw and Partners is an upbeat broker for the business. Its analysts currently have a buy rating and a target price of $ 5.00 on its shares. That’s more than double the current Openpay share price of $ 2.26.
The broker points out that Openpay’s shares are trading at a significant discount compared to rivals such as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P).
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James Mickleboro has no position in any of the stocks mentioned. Motley Fool Australia’s parent company, Motley Fool Holdings Inc., owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares in AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article only contains general investment advice (under AFSL 400691). Authorized by Bruce Jackson.
