If you have a high tolerance for risk, then it could be worth checking out the small cap ASX share in this article.
That's because analysts at Bell Potter are tipping its shares to rise materially over the next 12 months.
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Which small cap ASX share?
The small cap we are going to look at today is EMvision Medical Devices Ltd (ASX: EMV).
It is an Australian medical device company developing a novel approach to looking inside the human body.
It notes that its product pipeline includes portable, non-invasive, affordable, and safe neurodiagnostic devices.
The small cap ASX share states that its vision is to help transform and improve the timely diagnosis and treatment of stroke and other time sensitive medical emergencies, at the point-of-care.
What is the broker saying?
Bell Potter highlights that the company has just raised funds. This will allow it to pursue its clinical, regulatory, and commercial activities. It was pleased that the capital raising wasn't as dilutionary as expected. The broker explains:
EMV has raised c.$12m at $1.94 / sh, representing a c.16.4% discount to the last close prior to the raising and a c.6.6% discount to the 15-day VWAP. The raising includes a $1m SPP with capacity for oversubscriptions to $2m, as well as out of the money options to be listed on a 3 for 4 basis at $3.40 / sh with a two-year expiry. The funds raised enable EMV to continue to pursue its clinical, regulatory and commercial activities, while maintaining funding runway. We had assumed a raising of $20m in FY26 at $1.50/sh, so this raising is less dilutionary than expected. If exercised, the options would raise a further c.$18.9m. Pro-forma net cash should equate to c.$21.8m.
Its analysts note that the small cap ASX share is now well-placed to undertake its studies with the hopes of filling an unmet need. It adds:
EMV has announced the commencement of a new Pre-Hospital Mobile Stroke Unit Study to evaluate EMV's First Responder (FR) Brain Scanner in the Melbourne Mobile Stroke Unit (MSU) — one of only ~45 MSUs globally, and one of only two in Australia. The Two-Stage study on 10 suspected stroke patients anticipates reporting in 4QCY25 and includes: Stage 1 – Evaluating the usability and workflow integration of the EMV FR scanner within the MSU environment in the hyperacute stroke phase.
Stage 2 – Utilise the production equivalent FR device, to collect EMV scan data matched with ground-truth radiological imaging (Head CT) to support the advancement and evaluation of EMV's AI-enhanced stroke detection algorithms. Due to size, cost, staffing requirements and complexity of MSUs, a more scalable solution is required to provide broad access to pre-hospital models of stroke care, and EMVs FR seeks to fill this unmet need.
Big potential returns
According to the note, Bell Potter has reaffirmed its speculative buy rating on the company's shares with an improved price target of $3.15 (from $2.95).
Based on its current share price of $1.94, this implies potential upside of 62% for investors over the next 12 months.
