Investors with a higher tolerance for risk might want to check out the small cap ASX shares listed below that brokers are tipping as buys.
Let's see what they are saying about these stocks:
Aeris Resources Ltd (ASX: AIS)
Bell Potter thinks that this copper miner could be a great option for investors right now.
The broker currently has a buy rating and 27 cents price target on its shares. Based on its current share price of 17 cents, this implies potential upside of 59% over the next 12 months.
Bell Potter believes the company would be a great option for investors looking for copper exposure. It explains:
AIS is a copper dominant producer with all its assets in Australia. Its near-term outlook is highly leveraged to the copper price and increasing grades and production at the Tritton copper mine. Successful delivery offers significant upside and a strategically attractive asset in Tritton, making AIS vulnerable as a corporate target. Retain Buy.
Camplify Holdings Ltd (ASX: CHL)
Another ASX small cap stock to look at is Camplify. It operates one of the world's leading peer-to-peer digital marketplace platforms, connecting recreational vehicle (RV) owners to hirers.
Morgans is feeling very bullish. It has an add rating and $2.55 price target on its shares, which suggests that upside of 92% is possible from current levels.
The broker highlights the company's positive long term growth outlook thanks to opportunity both at home and abroad. It said:
We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.
Mach7 Technologies Ltd (ASX: M7T)
A third small cap ASX share that has been named as a buy is Mach7. It is an enterprise image management systems provider.
Morgans is also feeling bullish on this name. It has an add rating and $1.36 price target on its shares. This is more than double its current share price.
It believes the company is well-placed to deliver further strong growth over the medium term. The broker said:
Mach7 is a provider of enterprise image management systems that allow hospitals to identify, connect and share image and patient care data. Revenue growth of at least 20% pa is expected over the next three years.
