If you have a high tolerance for risk, then it could be worth taking a look at the shares named below!
That's because these two small cap ASX shares have recently been named as buys and tipped to rise strongly from current levels.
Here's what brokers are saying about these shares:
Bluebet Holdings Ltd (ASX: BBT)
The first small cap ASX share that could be a buy is BlueBet. That's the view of analysts at Morgans, which are bullish on the sports betting company.
Morgans was happy with BlueBet's recent annual general meeting update. It notes that management continues to expect to achieve positive EBITDA during the first half of FY 2025. It also highlights that the company is performing well ahead of the prior corresponding period. It explains:
BlueBet Holdings (BBT) delivered an AGM address yesterday where it indicated that the business remains on track to achieve monthly EBITDA profitability before the end of 1H25. November trading month-to-date is materially ahead of prior year and encouragingly, BBT says it is well positioned to be normalised EBITDA-positive for FY25 (MorgansF: $4.1m).
Business momentum has been driven by a strong Spring Racing Carnival period, which looks to have been supportive to all bookies given many of the favourites fell well short of the mark. While disclosure was limited, BBT indicated that it achieved a net win margin of 15.8% across the four days at Flemington. As a result, we've bumped our 2Q25 net win margin to 10.2%.
Morgans has retained its add rating with an improved price target of 35 cents.
Based on its current share price of 31 cents, this implies potential upside of 13% for investors from current levels.
Fenix Resources Ltd (ASX: FEX)
Another small cap ASX share that could deliver big returns for investors is Fenix Resources.
Bell Potter is a fan of the small cap mining and development company. So much so, it named it as a top pick for 2025. It commented:
Fenix Resources is unlocking stranded mining assets across the Mid-West region of Western Australia, through three wholly owned business pillars: (1) iron ore mining; (2) bulk commodity haulage (Newhaul Road Logistics); and (3) port services (Newhaul Port Logistics). The company's internal iron ore production is growing to 4Mtpa through its Iron Ridge (100% FEX, operating), Beebyn-W11 (10Mt Right to Mine agreement, in development), and Shine (100% FEX, operating) mining operations.
FEX's logistics streams provision bulk commodity haulage and port services for in- house and third-party customers. The group controls the largest storage and throughput position at the strategic and fast growing Geraldton Port. Its portfolio of low- capital mining assets and integrated logistics networks should continue to underpin robust cash flows, funding growth expenditure requirements and shareholder returns. Buy, Price Target $0.41
Bell Potter has put a buy rating and 41 price target on its shares. Based on its current share price of 26 cents, this implies potential upside of almost 60%.
