ASX penny stocks come with increased volatility compared to established blue-chip shares.
However, they can also provide investors with increased upside.
Yesterday, the team at Bell Potter released two reports that included buy recommendations and attractive price targets for two ASX penny stocks.
Here is what the broker had to say.
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Aeris Resources Ltd (ASX: AIS)
Aeris Resources is a mid-tier base and precious metals explorer and producer.
Its copper-dominant portfolio comprises four operating assets, including its cornerstone 100%-owned Tritton copper operations near Cobar in central New South Wales.
This ASX penny stock has seen its share price rocket 127.78% higher year to date.
At the time of writing, shares are trading for roughly $0.41.
The team at Bell Potter believes there is more room for growth. The broker has upgraded its rating to a buy and placed a price target of $0.65 (previously $0.52) on AIS shares.
This indicates an upside of 58.54%.
The broker said the company has delivered a trio of positive catalysts:
- A key $80m equity raising
- A maiden Ore Reserve for its Constellation deposit at Tritton
- And the sale of the small-scale North Queensland copper assets.
In yesterday's report, the broker said this placement removes an overhang on the stock.
It has also bolstered AIS' ability to fund its key growth project, Constellation, which underpins copper production growth, lower unit costs, and margin expansion at Tritton. This will further leverage AIS' exposure to a rising copper price.
AIS is a copper-dominant producer with its near-term outlook highly leveraged to the copper price and increasing production at Tritton, which is now the largest copper mine in Australia not owned by a major mining company and is an attractive corporate target, in our view.
Frontier Energy Ltd (ASX: FHE)
FHE is a renewable energy developer based in Perth.
Its Stage 1 project aims to build a 120MW solar generation facility along with an 81.5MW (6hr) battery to supply electricity into the grid with further expansion potential. This aims to take advantage of higher prices during peak demand and payments from the Reserve Capacity Mechanism (RCM).
Its stock price has also risen significantly in 2025, increasing 123% since January.
Bell Potter is optimistic that the growth can continue.
In yesterday's report, the broker stated that it could benefit from Western Australia's growing peak demand for electricity, driven by a rising population and increased electrification.
Once operational, we expect that FHE's Stage 1 project will generate $55m/yr of EBITDA from October 2027, with a long life of assets, low operating costs and a low cost of equity.
The broker has a speculative buy recommendation on this ASX penny stock.
Its price target of $0.50 indicates an upside of 72.41% from today's opening price of $0.29.
