If you have a higher than average risk tolerance, then you may want to look at the small cap ASX shares listed below.
That's because analysts at Bell Potter have just named them both as top picks for 2025 with major upside potential. Here's what the leading broker is saying about these names this year:
Biome Australia Ltd (ASX: BIO)
The first small cap ASX share to look at according to the broker is Biome Australia. It develops and commercialises clinically backed innovative live biotherapeutics (probiotics), marketing 17 products under the Activated Probiotics brand.
Bell Potter likes the company due to its distribution network and bold sales growth guidance. It said:
We like how BIO differentiates itself through evidence-based condition specific products that provide the intellectual platform to target pharmacy/health practitioner distribution networks. BIO has an impressive distribution network covering more than 5,000 points of distribution across Australia and is also building an international business. BIO is moving up the quality scale via becoming cash flow positive and has released three-year cumulative guidance that aims to triple sales.
The broker has a buy rating and 85 cents price target on its shares. Based on its current share price of 58 cents, this implies potential upside of 47% for investors over the next 12 months.
Santana Minerals Ltd (ASX: SMI)
Another small cap ASX share that could be a buy according to Bell Potter is Santana Minerals.
It is a gold explorer and developer with a focus on the Bendigo-Ophir Gold Project (BOGP) near Queenstown in New Zealand.
Bell Potter is very positive on the BOGP project and highlights its low costs and attractive mine life. It notes:
The project has a high grade Ore Reserve of 1.2Moz @ 2.4g/t Au and is emerging as one of the most attractive gold development projects of this scale on the ASX. Bottom quartile costs, conventional mining and processing methods and an initial 10-year mine life on Reserves alone make it attractive for both debt and equity financing. It is well placed to advance through final studies, financing and permitting, with one of the most favourable and rapid development pathways to production (and production re-rating) among its peer group.
Its analysts have a speculative buy rating and $1.07 price target on its shares. Based on its current share price of 48 cents, this implies massive potential upside of 120% for investors between now and this time next year.
