The two ASX stocks listed below have been on fire of late, much to the delight of their shareholders.
The good news is that the team at Bell Potter believes that the gains are far from over. Here's why its analysts are tipping these hot stocks as buys:
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Azure Minerals Ltd (ASX: AZS)
This lithium explorer's shares have risen 43% since this time last month. But pleasingly, Bell Potter still sees scope for its shares to almost double in value from current levels.
This morning, the broker has reiterated its speculative buy rating and $3 price target on the ASX stock.
Its analysts believe the market is undervaluing the company based on the potential quality of its Andover project in Western Australia. It said:
AZS offers exposure to a very-high potential WA Li exploration project, in the early stages of discovery. We think it's undervalued given the clear upside that Andover could support a Tier-1 mining operation, in the Tier-1 mining jurisdiction of Western Australia.
DroneShield Ltd (ASX: DRO)
This drone defence company's shares have rallied over 30% since this time in June. A key driver of this has been the ASX stock's announcement of a contract win with the US government.
Bell Potter sees this win as a "game changer" for the company. As a result, this morning, it has retained its buy rating with an improved price target of 45 cents. This implies a potential upside of 43% for investors from current levels.
The broker commented:
DroneShield Limited this morning announced the receipt of a record $33 Million U.S. Government Contract, which consists of DRO equipment and multi-year services (warranty and software subscriptions). The contract value is 3x the size of the previous record contract ($11m) and close to double the company's CY22 revenue ($16.9m). This is clearly a business defining contract for the company and increases the current order backlog to a record $62m, with a sales pipeline of over $200m across more than 80 opportunities.
