Bell Potter is tipping huge returns from these small cap ASX shares

Big things could come from these small caps in 2024.

| More on:
A man in suit and tie is smug about his suitcase bursting with cash.

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

Are you looking to invest in some small cap ASX shares with the potential to deliver very strong returns?

If you are, and have a high tolerance risk, then it could be worth looking at the two small caps listed below that Bell Potter is bullish on. They are as follows:

Arafura Rare Earths Ltd (ASX: ARU)

The first small cap ASX share that has been named as a buy is Arafura Rare Earths.

It is the owner of the Nolans rare earths project, which aims to supply a significant proportion of the world's neodymium and praseodymium (NdPr) demand in the future.

These are critical minerals in the production of high-performance neodymium magnets. They are used in mobile phones, electric vehicles, wind turbines, and military weapons.

The team at Bell Potter is positive on the company and believes it is well-positioned due to "growing demand from the electric vehicle and wind turbine sectors in combination with a need to de-risk current supply concentration in China."

Bell Potter has a speculative buy rating and 44 cents price target on Arafura's shares. This implies that its shares could rise 175% over the next 12 months.

Curvebeam AI Ltd (ASX: CVB)

Another small cap ASX share that Bell Potter rates highly is Curvebeam AI.

It is a developer and manufacturer of specialised medical imaging equipment and software aids using image analysis, artificial intelligence (AI) and deep learning AI (DLAI). Its flagship product is the HiRise scanner, which provides high resolution 3D imaging, primarily for the lower body.

The broker likes the company due partly to its proprietary imaging technique, which improves orthopaedic management. It also notes that a recent strategic partnership with Stryker Corporation is critical to commercialisation.

Particularly given that "Stryker is a very large and powerful participant in the market for orthopaedic surgery consumables, prosthetics and surgical aids."

It adds that "the larger sales team is exceptionally well positioned to create selling opportunities for HiRise and there are significant synergies with the Stryker product portfolio." Overall, the broker anticipates that "the Distribution Agreement will accelerate adoption by years."

Bell Potter currently has a speculative buy rating and 50 cents price target on its shares. This suggests a potential upside of 33% from current levels.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 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 »

Boys making faces and flexing.
Small Cap Shares

3 ASX small-cap shares that ripped 295% to 900% in 2024

Several individual small-caps shone but the S&P/ASX Small Ordinaries Index underperformed the ASX 200.

Read more »