Investors with a higher than average tolerance risk might want to check out the ASX small cap shares listed below.
That's because they have been tipped as buys with potential to rise strongly from current levels. Here's what you need to know about them:
Cettire Ltd (ASX: CTT)
This rapidly growing online luxury products retailer's shares could be in the buy zone still despite more than doubling in value over the last 12 months.
That's the view of analysts at Bell Potter, which responded to the ASX small cap share's half year results by retaining their buy rating with an improved price target of $4.80. This implies potential upside of 15% for investors over the next 12 months. The broker said:
We think CTT's ability to outperform their peer group far outweighs others given the ~0.9% market share and further supported by the current consolidation the luxury ecommerce market. We also view CTT's current EBITDA margins ahead of other ecommerce players with minimum risk associated with the drop-ship inventory model. We retain our BUY recommendation.
IPD Group Ltd (ASX: IPG)
Bell Potter is also feeling bullish about this small cap ASX share.
IPD is a distributor of compliant and innovative electrical infrastructure products with value-add custom-made solutions. Bell Potter believes it has a major long-term opportunity with electric vehicle charging and data centres. It said:
Electrification is emerging as a dominant market narrative and IPD Group is strongly leveraged to this growth trend through its supply of 'low voltage' electrical equipment that reduces the energy use of buildings and infrastructure. IPD has delivered two years of 15-20% organic growth since listing and we think 2024 is shaping up to be another strong year driven by continued ABB market share wins and a growing presence in data centres
Bell Potter has a buy rating and $5.75 price target on its shares. This implies potential upside of 19% for investors from current levels.
