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.

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 man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
Small Cap Shares

Why I think this ASX small-cap stock is a bargain at $3.36

This business could continue revving higher…

Read more »

A young boy wearing a hat, sunnies and striped singlet looks fierce and flexes his arm in victory.
Small Cap Shares

Why this ASX small-cap stock has significant potential

This business is delivering significant growth.

Read more »

Five young boys wearing small caps sit on a bench together watching a baseball game.
Small Cap Shares

5 ASX small-cap shares that screamed 114% to 362% higher in FY25

Here are some examples of ASX small-cap shares that experienced outstanding price growth in FY25.

Read more »

Three young people in business attire sit around a desk and discuss.
Small Cap Shares

Tiny tech: 3 ASX small-cap shares with new ratings

Toby Grimm of Baker Young and Peter Day of Sequoia Wealth Management share their new ratings.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Small Cap Shares

Hidden gems: Experts name 3 ASX small-cap shares to buy now

One of these ASX small-cap shares has risen by a staggering 1,687% over the past 12 months.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Small Cap Shares

These ASX small cap shares could be tomorrow's blue chips

Analysts think these small caps could be great picks right now.

Read more »

A elder man and woman lean over their balcony with a cuppa, indicating share rpice movement for ASX retirement shares
Small Cap Shares

Why I think this ASX small-cap stock is a bargain at 58 cents

This stock looks like a great buy, in my opinion.

Read more »

A young boy wearing a hat, sunnies and striped singlet looks fierce and flexes his arm in victory.
Small Cap Shares

Forget CBA shares. What about small-cap ASX financial shares?

Analysts discuss 2 small-cap ASX financial shares that are up by more than 40% in 2025.

Read more »