If you have a high tolerance for risk, then the speculative ASX stock in this article could be worth considering.
That's because it is being tipped to rise by over 50% from current levels over the next 12 months by analysts at Bell Potter.
Which speculative ASX stock?
The stock in question is Genetic Signatures Ltd (ASX: GSS).
It is a molecular diagnostics company using its proprietary 3base technology platform to improve the diagnosis of infectious diseases. Its portfolio includes tests for respiratory, gastrointestinal, and sexually transmitted infections.
Bell Potter notes that the speculative ASX stock delivered record sales in the first quarter (excluding COVID-related sales). This was driven by increased demand due to the Australian flu season. It said:
Q1 revenue was up +15% on pcp to $5.4m and tracking in line with our 1H forecast ($9.5m). The record sales quarter (excl. Covid sales) continued to be dominated by the Aus infectious disease market (~90% of total company sales) and benefited from one of the worst local flu seasons on record. EMEA sales grew +27% on pcp from a small base (mostly driven by UK) and is likely to expand beyond the current ~10% share of total revenue in the coming years. The most significant update was the announcement of first US sales in September.
And while the company is still burning cash, it highlights that its strong balance sheet gives it a two-year runway to return to profit. It said:
Quarterly free cash outflow was -$2.5m, a material improvement from the preceding quarter (-$6.2m) due to greater cash receipts and lower payments. Closing cash balance was $28.2m as at 30-Sep-2025 and provides >2 years of runway for GSS to ramp up US penetration and return to breakeven. Receipt of a ~$4m R&DTI refund in Q2 FY26 will also benefit the balance sheet.
Big potential returns
According to the note, the broker has responded to the quarterly update by retaining its speculative buy rating and 55 cents price target on the speculative ASX stock.
Based on its current share price of 36 cents, this implies potential upside of 53% for investors over the next 12 months.
Commenting on its buy recommendation, the broker said:
Valuation remains unchanged at $0.55/share and is comprised of a blend of DCF (16.0% WACC, 3.0% TGR) and EV/Rev (3.0x FY27e). The key catalysts are further updates regarding US market penetration of the GI parasite detection test. As seen in today's share price reaction, investors are closely watching US progress, and we see plenty of scope for more positive announcements in the short-term.
