Brokers name 2 small-cap ASX stocks on the rise

If you’re a fan of ASX small-cap stocks, you might want to add the two stocks listed below to your watchlist.

Here’s what you need to know about these small-cap ASX stocks:

Readytech Holdings Ltd (ASX: RDY)

The first small-cap ASX stock to watch is Readytech. It is an enterprise software provider with a focus on underserved market verticals such as higher education and local government.

Demand for its sticky software continues to grow and underpins strong revenue growth in recent years.

That continued into fiscal 2022, when Readytech reported revenue of $78.3 million. This was a 16.8% increase year-on-year and ahead of the guidelines for organic growth in the teenage years.

The good news is that Goldman Sachs predicts more of the same in the coming years. Readytech is expected to “continue to grow organically in the teens while making new acquisitions.”

In light of the bullish view, Goldman currently has a buy rating and a $4.60 price target on the stock.

Silk Laser Australia Limited (ASX: SLA)

Another small-cap ASX stock brokers have been recommending to buy is Silk Laser.

It is the operator of one of Australia’s largest specialty clinic chains, offering consumers a range of non-surgical aesthetic products and services. These include laser hair removal, cosmetic injections (Botox, etc.), skin care treatments, body contouring and skin care products.

Demand for Silk’s services has been high in recent years and continued during the pandemic and then into FY22. That and recent acquisitions helped the company grow sales by 91% to $162.7 million.

And while the current economic environment may be challenging for consumer spending, management remains positive and “expects to continue the growth trajectory in FY23.”

Wilsons is a fan of the company. The broker currently has an overweight rating and a $3.62 target price on the stock.