If you are looking for exposure to the small side of town, then it could be worth checking out the small cap ASX share in this article.
That's because analysts at Bell Potter are tipping it as a top buy in 2025.
Let's see what the broker is saying about this growing company.
Which small cap ASX share?
The small cap in question is GenusPlus Group Ltd (ASX: GNP).
It is a service provider to mining, utilities, and other private customers who have needs across electrical plant and equipment, power, and telecommunications infrastructure.
The small cap ASX share has five core business segments: Powerlines Plus (PLP) (Overhead Power Infrastructure), Diamond (Underground Power and Telecommunications), Proton Power (HV Testing and Commissioning), ECM (Electrical Services and Mechanical Fabrication), and Genus Renewables.
According to a note out of Bell Potter, the broker believes that GenusPlus is "a key small-cap investment opportunity" for investors in 2025.
What is the broker saying?
Bell Potter notes that the company has announced several large contract wins recently. It highlights that this de-risks the broker's revenue growth assumptions for the coming years. Its analysts explain:
Our FY25-27 revenue forecasts are largely secured against 8 major contracts. While unsecured revenue is still forecast over FY25-27, we acknowledge the analysis does not consider revenue generation from small Power Infrastructure subsidiaries and recently acquired businesses, including Partum Engineering, Geographe Tree Services, Blue Tongue Energy and L&M Powerline Constructions.
In light of this, the broker believes that the small cap ASX share is destined to deliver strong earnings per share (EPS) growth in the coming years. It adds:
Findings of our analysis highlight: (1) ~90%+ of our revenue forecasts are now contracted, giving us a high degree of confidence in our 23% EPS CAGR outlook; and (2) each successive major contract award from now will likely drive an upgrade to our (and possibly consensus) forecasts.
Time to buy
Bell Potter has reaffirmed its buy rating and $3.10 price target on the company's shares.
Based on its current share price of $2.60, this implies potential upside of 19% for investors over the next 12 months.
In addition, a modest 1.1% dividend yield is expected in 2025, boosting the total potential return to approximately 20%.
Commenting on its buy rating, the broker said:
We continue to see GNP as a key small-cap investment opportunity to play the theme of increasing investment in renewable energy, battery energy storage and transmission infrastructure across Australia. GNP's valuation multiples are undemanding when considering our EPS CAGR expectation of 23% over FY24-27.
