Broker says these exciting small-cap ASX shares are buys

These could be top options at the small side of the market.

| More on:
A young man wearing a black and white striped t-shirt looks surprised.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors with a high tolerance for risk might want to check out the small-cap ASX shares listed below.

That's because they have just been tipped as buys by analysts at Bell Potter. Here's what it is saying about them:

4DMedical Ltd (ASX: 4DX)

This medical technology company could be a buy according to Bell Potter.

It appears excited by the company's LVAS technology, which may have created a step change in the capacity to accurately and quickly understand the lung function of patients with respiratory diseases.

The broker was particularly pleased with its potential agreement with global giant Philips. It said:

4DX has announced a Memorandum of Understanding (MoU) with Koninklijke Philips N.V. ("Philips"), a leading global healthcare company, to establish a strategic collaboration to expand federal and commercial sales opportunities for XV Technology in the US. Philips are one or the largest providers of medical imaging hardware and software globally and represent a powerful partner, that may accelerate adoption of the LVAS scan by years.

Bell Potter has a speculative buy rating and a $1.40 price target on its shares.

DroneShield Ltd (ASX: DRO)

Bell Potter also believes that this counterdrone technology company is a small-cap ASX share to buy despite its sensational gains this year.

It thinks the company is well-placed to build on a transformational year. It said:

CY23 has been a transformative year for DroneShield, with our estimates anticipating the company to record $69.9m in revenue for the year, approximately 4x the CY22 result ($16.9m). This significant revenue growth has laid the foundation for DRO's first profitable year (BPe NPAT $15.2M), and the company is financially well positioned to capitalise on increasing demand, with $62.5m in cash as of 20-Nov-23. The current contracted order backlog stands at $38m and the sales pipeline is approximately $400m.

Bell Potter has a buy rating and 45 cents price target on its shares.

Should you invest $1,000 in 4dmedical Limited right now?

Before you buy 4dmedical Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and 4dmedical Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 9 January 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has recommended DroneShield. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Small Cap Shares

A little girl with red hair runs excitedly with a rocket strapped to her back, trying to launch.
Small Cap Shares

Guess which ASX small-cap stock exploded 154% on big US news!

ASX small-cap stocks carry added risk, but also sometimes offer supersized rewards.

Read more »

A group of businesspeople clapping.
Healthcare Shares

This fund returned 109% in 2024. Here are 2 of its best-performing ASX shares

Small caps proved to be the winners last year.

Read more »

A boy stands firm on a rocky cliff holding a rocket in each hand and looking up toward the sky, anticipating flying into space.
Technology Shares

2 small-cap ASX tech shares rocketing on big US news

The junior ASX tech shares are enjoying a big lift following positive developments in the US.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Small Cap Shares

Guess which ASX small-cap is up 92% in just 2 days!

Investors have been fighting to get hold of this stock this week. But why?

Read more »

Two boys looking at each other while standing by start line on stadium against two schoolgirls.
Small Cap Shares

The imminent tailwind for ASX small-cap shares: fundie

Oscar Oberg from Wilson Asset Management explains why he thinks it's a good time to buy small-caps.

Read more »

Small girl giving a fist bump with a piggy bank in front of her.
Small Cap Shares

Want more exposure to small-cap stocks? I'd invest in this ASX ETF

Small-caps can have a lot of growth potential.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Small Cap Shares

Bell Potter says this ASX share is a 'small-cap investment opportunity'

The broker thinks this small cap is destined to deliver strong earnings growth.

Read more »

man looking happy and excited as he looks at his mobile phone
Small Cap Shares

Guess which small cap ASX stock is jumping 12% despite the market selloff

Let's find out why investors are buying this small cap today.

Read more »