Analysts say these small cap ASX shares could rise 30% and 50%

Here's why they are tipping these shares to deliver big returns for investors.

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If you have a high tolerance for risk, then read on!

That's because the two small cap ASX shares listed below have just been named as buys and tipped to rise strongly from current levels.

Here's what brokers are saying about these shares:

Bluebet Holdings Ltd (ASX: BBT)

This sports betting company's shares could be a buy according to analysts at Morgans.

The broker was pleased with its recently annual general meeting update, noting that management continues to expect to achieve positive EBITDA during the first half. It also highlights that the small cap ASX share is performing materially ahead of the prior corresponding period. It said:

BlueBet Holdings (BBT) delivered an AGM address yesterday where it indicated that the business remains on track to achieve monthly EBITDA profitability before the end of 1H25. November trading month-to-date is materially ahead of prior year and encouragingly, BBT says it is well positioned to be normalised EBITDA-positive for FY25 (MorgansF: $4.1m).

Business momentum has been driven by a strong Spring Racing Carnival period, which looks to have been supportive to all bookies given many of the favourites fell well short of the mark. While disclosure was limited, BBT indicated that it achieved a net win margin of 15.8% across the four days at Flemington. As a result, we've bumped our 2Q25 net win margin to 10.2%.

Morgans has retained its add rating with an improved price target of 35 cents. This implies potential upside of 32% for investors from current levels.

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

Another small cap ASX share that has been named as a buy is biopharmaceuticals company Paradigm.

Bell Potter has lifted its valuation of the company materially after some big news last week. That news revealed that Paradigm may now commence recruitment of the phase 3 U.S. trials for Zilosul in the treatment of knee osteoarthritis (OA).

This is "significant" news according to Bell Potter, which highlights that the company has a huge market opportunity. It said:

The size of the prize for approval the Osteoarthritis market is highly lucrative to say the least. The US market is at least $3bn annually on conservative estimates and likely multiple times larger.

The opening of the IND in the US is significant step forward. The risk of clinical trial failure is substantially reduced and the recent move in share price is a reasonable representation of this change. Valuation is amended to $0.80 following changes to funding assumptions in the financial model which assumes further equity issuance and a partnering deal ahead of approval in ~3 years time.

Bell Potter has put a speculative buy rating and 80 cents price target on its shares. This implies potential upside of 52% for investors from current levels.

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