Why this ASX small cap stock could rocket 60%

Bell Potter sees huge upside potential from this small cap.

| 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

If you have a high tolerance for risk, then having a little exposure to the small side of the market could be a good idea.

That's because the potential returns on offer from ASX small-cap stocks can be incredible.

For example, Bell Potter has just named $135 million copper miner Aeris Resources Ltd (ASX: AIS) as a small cap to buy and is tipping huge returns over the next 12 months.

An ASX small-cap stock to buy

According to the note, the broker has retained its buy rating and 23 cents price target on Aeris' shares.

Based on its current share price of 14.5 cents, this suggests that almost 60% upside is possible for investors.

To put that into context, a $10,000 investment would turn into $16,000 if Bell Potter is on the money with its recommendation.

Why is the broker feeling bullish?

Bell Potter highlights that the copper price has started to recover after a period of significant weakness. It believes this recovery could continue, which would be great news for this ASX small-cap stock. The broker said:

Since hitting a low of US$8,065/t in early February 2024, the LME cash copper price has run up to +US$9,000/t, breaking above its recent trading range and making an 11 month high. The price currently sits at ~US$8,750/t, for a gain of 8.5% in the last seven weeks. We remain bullish on the outlook for copper and continue to forecast rising prices based on supply disruptions, a finely balanced market, its direct exposure to the renewable energy/electrification thematic and broad-based demand that is not entirely dependent on China.

Commenting on why the broker thinks Aeris is a great option for investors, its analysts said:

AIS is a copper dominant producer with all its assets in Australia. Its near-term outlook is highly leveraged to the copper price and increasing copper grades and production at the Tritton copper mine. Successful delivery offers significant upside to the share price and a strategically attractive asset in Tritton, making AIS vulnerable as a corporate target.

Should you invest $1,000 in Aeris Resources Limited right now?

Before you buy Aeris Resources 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 Aeris Resources 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 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 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 »