These three small market cap shares have more than a 30% upside according to brokers.
Australian Vintage Ltd (ASX: AVG), Clarity Pharmaceuticals Ltd (ASX: CU6) and AIC Mines Ltd (A1M) are rated as buy or overweight in separate reports published by the ASX.
Let's take a look at these three ASX shares in more detail.
AIC Mines
AIC Mines shares are flat today and currently fetching 45 cents. Ord Minnett has placed a "speculative buy" rating on the AIC Mines share price with an 80 cent price target. This implies an almost 78% upside on the current share price.
Ord Minnett is positive on AIC Mines' takeover of Demetallica Limited (ASX: DRM). Commenting on the acquisition, analysts said:
….the acquisition increases A1M's prominence in terms of scale, liquidity, mine life and risk profile – which should place it on the radar for more investors. We increase our target price to A$0.80/sh (+7%) and retain our positive view.
Australian Vintage
Australian Vintage shares are down 3.2% today and are currently fetching 60.5 cents. MA Moelis Australia has placed a buy rating on the wine company's share price with an 87 cent price target. This implies an upside of about 43%. Analysts are positive on the company's agreement to sell multiple commercial vineyards to Warakirri Asset Management for $62.5 million. This deal "unlocks significant value" from the company's balance sheet, CEO Craig Garvin said earlier this month.
Commenting on the outlook for Australian Vintage, broker MA Moelis Australia said:
We see the sale and leaseback of the Coldridge and Grande Junction commercial
vineyards as a positive move, which strengthens the balance sheet at a time when
market conditions are relatively challenging due to an oversupply of Australian wine.We maintain our buy rating and raise our target price to $0.87 (prev: $0.81),
reflecting the change in capital structure.
Clarity Pharmaceuticals
Clarity Pharmaceuticals shares are 1.1% in the green today and are currently priced at 92 cents. Wilsons has maintained an "overweight" rating on Clarity Pharmaceuticals with a 12-month price target of $1.22. This implies a nearly 33% upside based on the current share price.
Wilsons is positive on Clarity's upcoming trial results for its SAR-bisPSMA product for prostate cancer. Analysts said:
We maintain our overweight rating on Clarity Pharmaceuticals with a revised price target of $1.22/sh. We view the upcoming release of Clarity's Phase I/II propeller trial results for their 64Cu-SAR-bisPSMA in prostate cancer diagnosis as a de-risking event, with clear signals
towards a positive outcome.Pending the release of these results, we revise our SOTP ROVs, additionally supported by the SAR-Bombesin PSMA-negative prostate tracking ~3 years ahead of schedule.
