These small cap ASX shares could rise 50% to 65%

If you have a high tolerance for risk and are on the hunt for big returns, then look no further.

That's because analysts at Bell Potter have named the two small cap ASX shares listed below as buys with potential to deliver outsized returns.

Let's see what the broker is saying about them:

Aroa Biosurgery Ltd (ASX: ARX)

The first small cap ASX share that Bell Potter is tipping as a buy is Aroa Biosurgery.

It is a commercial stage medical device company that operates within the complex wound care and soft tissue reconstruction sector.

The broker highlights that Aroa Biosurgery is well-placed to deliver earnings growth and strong free cash flow generation in the coming years. This is despite a product launch delay. It said:

The FY26 revenue forecast is reduced from $109m to $103m – modestly above the top end of guidance range. FY27 revenues also reduced due to the delay in launch of the Symphony product. We also expect FY26 EBITDA at the upper end of guidance. Over the forecast period we expect meaningful growth in earnings and FCF driven by leverage to the 85% gross margin. ARX is currently trading on an EV/FY25 revenue multiple of ~1.9x relative to our valuation benchmark of 3.0x.

Bell Potter has a buy rating and 85 cents price target on the company's shares. Based on its current share price of 51 cents, this suggests that upside of 66% is possible between now and this time next years.

Integral Diagnostics Ltd (ASX: IDX)

Another small cap ASX share that could be a buy according to the broker is Integral Diagnostics.

It is a leading diagnostic imaging company that merged with Capitol Health. It operates 151 clinics throughout Australia, offering a range of imaging modalities through its clinics.

Bell Potter believes that the small cap could be positioned for a period of double-digit earnings growth. It explains:

We have adjusted our blended valuation for the rebased earnings and given the proximity to the FY25 reporting season, rolled forward our DCF and EBITDA multiple valuations to arrive at a c.1.7% upgrade to our TP to $3.65/sh, or c.50% upside to the current share price. We think IDX is emerging with several tailwinds that could support double-digit earnings growth and support a re-rating of the company's valuation.

Bell Potter has a buy rating and $3.65 price target on its shares. This implies potential upside of 50% for investors over the next 12 months.