If you're an investor with a high tolerance for risk, then you may want to look at the ASX shares listed below.
This week the team at Bell Potter put speculative buy ratings on them. Here's what you need to know:
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Bubs Australia Ltd (ASX: BUB)
According to the note, Bell Potter has retained its speculative buy rating and lifted its price target on this infant formula company's shares to 70 cents. The broker was pleased with Bubs' better than expected performance during the second quarter and has upgraded its estimates to reflect this.
Bell Potter commented: "BUB delivered another strong quarter of growth in 2Q22, which again has been driven in large by the infant nutrition business. Improving secular trade flows to China, continued signs of brand traction and the potential for BUB to benefit in indirect distribution channels as A2M shifts focus to direct China channels, are supportive of our Buy, Speculative risk rating."
PointsBet Holdings Ltd (ASX: PBH)
Bell Potter has retained its buy rating but cut its price target on this sports betting company's shares to $9.00 following the release of its second quarter update. While the broker felt it was a bit of a mixed quarter, it saw enough in it to remain positive on the future.
It commented: "The key take-out of the Q2 quarterly was the trading metrics in both Australia and the US were good but the market share across most live states in the US continues to weaken."
"We continue to believe PointsBet will be successful in establishing a US business across approximately 18 states and provinces though the market share is unlikely to reach its target of 10%, at least in the short to medium term (i.e. before product becomes the key driver)," the broker added.
Volpara Health Technologies Ltd (ASX: VHT)
Finally, Bell Potter has retained its speculative buy rating and trimmed its price target on this medtech company's shares to $1.30. It notes that the company's shares have been on a downward trajectory over the last 12 months despite its strong growth continuing. Bell Potter appears to believe this could be a buying opportunity for investors.
The broker said: "The company continues to show solid progress in revenue growth and its move toward positive cash flow generation from operations. Notwithstanding, its EV/Revenue multiple has nearly halved over the course of the last year, consistent with many peers in the med tech space."
"VHT has an expanding revenue base and appears to be on a pathway to cash flow breakeven over the course of calendar years 2022/2023. We conclude that the company is well funded in the short term and will continue to expand its revenue footprint both from existing clients and newly business opportunities," it added.
