3 small cap ASX stocks that could rise 40% to 100%+

Brokers believes these small caps could be worth a closer look.

| More on:
Rising share price chart.

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 higher than average tolerance for risk, then it could be worth considering a few small cap ASX stocks for a balanced portfolio.

After all, the potential returns on offer at the small end of the market can be significant. Though, it is always worth remembering with this greater reward, comes greater risk.

With that in mind, let's take a look at three small cap ASX stocks that have been tipped to rise strongly from current levels. Here's what you need to know about them:

Aroa Biosurgery Ltd (ASX: ARX)

Analysts at Bell Potter think that Aroa Biosurgery could be a small cap ASX stock to buy right now.

It is a wound repair specialist company that uses a decellularised extra cellular matrix derived from ovine (sheep) gut.

Bell Potter has been impressed with the company's performance in FY 2024 and expects more of the same in the coming years. It explains:

The Myriad product achieved the highest rate of revenue growth in FY24. It is applied in the surgical setting to provide a substrate for regeneration of soft tissue and for reconstructive surgery. In FY24 revenues grew by 75% to NZ$23.3m and we expect a similar growth rate in FY25 and FY26 driven by an expanded user base and data from the Myriad Augmented Soft Tissue Regeneration Registry (MASTRR). ARX also expects to report data from its 120 patient randomised clinical trial in diabetic foot ulcer patients. The trial is investigating the healing properties of the Symphony product. Earlier studies in a very difficult patient population with advanced DFU's provided highly supportive data on the rate of wound healing.

Bell Potter has a buy rating and 90 cents price target on its shares. This suggests that upside of 42% is possible over the next 12 months.

Camplify Holdings Ltd (ASX: CHL)

Another ASX small cap share that has been named as a buy is Camplify. It is the number one player in ANZ in the peer-to-peer RV rental space.

Morgans is a fan of the company due to its huge growth opportunity at home and abroad. It explains:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

The broker has an add rating and $2.55 price target on its shares. This implies potential upside of over 100% for investors.

Mach7 Technologies Ltd (ASX: M7T)

A third small cap ASX share that has been named as a buy is Mach7. It is an enterprise image management systems provider.

Morgans is feeling positive about the company's outlook and is forecasting strong revenue growth in the coming years. It said:

Mach7 is a provider of enterprise image management systems that allow hospitals to identify, connect and share image and patient care data. Revenue growth of at least 20% pa is expected over the next three years.

The broker has an add rating and a $1.56 price target on its shares. This suggests that its shares could more than double in value from current levels.

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 Mach7 Technologies. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Camplify. The Motley Fool Australia has recommended Camplify and Mach7 Technologies. 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 young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Small Cap Shares

These small cap ASX shares could rise 50% to 65%

The team at Bell Potter is bullish on these names. Let's find out why.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Small Cap Shares

Want to beat the stock market? I'd focus on buying these ASX shares

I think these ASX shares offer plenty of promise.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Small Cap Shares

Guess which small cap ASX stock is rocketing 28% on $100m deal

It has been a very good start to the day for owners of this stock.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Small Cap Shares

Bell Potter says this small cap ASX stock can rocket 40%+

Let's see what Bell Potter is saying about this small cap.

Read more »

A person sitting at a desk smiling and looking at a computer.
Share Market News

2 ASX small caps with serious market-beating potential

Here's two compelling ideas to add to your watchlist.

Read more »

Woman in business suit holds both hands out with a question mark above each hand.
Small Cap Shares

Building a market beating portfolio: ASX 200 stocks vs small caps

From blue-chip shares to small-caps what’s best for your portfolio?

Read more »

Two kids in superhero capes.
Small Cap Shares

2 small ASX shares to buy that have big potential

A fund manager is optimistic about these stocks.

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

3 of the best small cap ASX stocks to buy now

Bell Potter thinks these shares are among the best to buy at the small end of town.

Read more »