If you have a high tolerance for risk, it could be worth having some small cap ASX shares in a balanced portfolio.
After all, the potential returns on offer at the small side of the market are much greater than at the large cap side.
But which small cap ASX shares could be buys for investors? Let's take a look at two that analysts at Morgans are bullish on. Here's what they are recommending:
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Findi Ltd (ASX: FND)
This India-focused payments company could be a small cap ASX share to buy according to Morgans.
It was relatively pleased with its recent FY 2025 results and believes the company is well-placed for growth over the long term. Particularly given the company's overall build out. It said:
FND's FY25 revenue beat guidance expectations (A$75m vs A$68m to A$70m)., whilst reported EBITDA came in at the mid-point of guidance (A$30m-A$32m). We saw this as a somewhat mixed result. While the headline numbers faired well versus guidance parameters they were assisted by higher "other income."
More positively F25 Operating cashflow generation was strong and FND's India IPO remains on track. We lower our FND FY26F/FY27F EPS by >10% off low bases. […] We think FND management are executing well on the company's overall build out, and with significant upside potential existing to our price target, we maintain our ADD call.
Morgans has an add rating and $7.55 price target on its shares. This suggests that upside of 100% is possible from current levels.
Imricor Medical Systems Inc (ASX: IMR)
Another small cap ASX share that could be a buy according to the broker is Imricor Medical Systems. It is a developer of innovative MRI-compatible medical devices.
The broker was pleased to see that its NorthStar Mapping System has been approved in Europe. Combined with other approvals, it expects its sales to grow at a solid rate in the coming quarters. It said:
IMR has announced approval for its NorthStar Mapping System in Europe. This is a major milestone for the company. We view the mapping system as a key component of its product offering and together with recent other approvals will drive a higher level of sales over subsequent quarters. IMR is well capitalised following the recent capital raising.
We have made no changes to our forecasts and valuation. Our target price remains unchanged at A$2.28. With recent products approved, growing clinician as well as investor interest, and a solid financial position, IMR is one of our key picks in the emerging healthcare sector. We maintain our SPECULATIVE BUY recommendation.
Morgans has a speculative buy rating and $2.28 price target on its shares. This implies potential upside of 44% for investors over the next 12 months.
