If you have a high tolerance for risk, then read on!
That's because listed below are two speculative, high risk, high reward ASX shares that have been rated as buys by brokers. Here's what they are recommending:
Intelligent Monitoring Group Ltd (ASX: IMB)
The team at Morgans thinks this security, monitoring and risk management services provider could be a top pick for investors.
It was pleased with the company's decision to acquire two businesses from Johnson Control which are generating high levels of recurring revenue. In addition, it believes Intelligent Monitoring Group could benefit from other acquisitions in the near future as conglomerates offload non-core assets. It said:
IMB has acquired two businesses for just $40m from Johnson Control, which together produce $10m EBITDA ( 4x EBITDA ). Each business has sticky revenue (75% recurring) with what looks like a strong customer base. In our view, IMB is a beneficiary of the dynamic whereby conglomerates are selling non-core assets following a realisation that consolidation of HVAC, fire systems and electronic security systems has failed to yield expected synergies.
While the company expects the acquisition to be +25-28% EPS accretive, we had assumed no tax was being paid in both FY26 & 27 and slightly lower interest costs. We incorporate the acquisitions and include close to full tax from FY26 onwards (as well as slightly higher interest), which sees EBIT up materially but EPS down in both FY26 and FY27. Target price rises to $1.00 through our DCF and EV/EBITDA valuation methodology.
Morgans has a speculative buy rating and $1.00 price target on this ASX stock. This implies potential upside of over 60% from current levels.
LinQ Minerals Ltd (ASX: LNQ)
Another speculative ASX stock that is rated as a buy is LinQ Minerals. It is a gold explorer that owns highly prospective ground in the Lachlan Fold Belt.
This includes the 100%-owned Gilmore Gold Copper Project, which is an advanced exploration stage project covering ~597km2 over a strike length of ~40km.
Bell Potter is bullish on the company, highlighting its experienced management team and its valuable tenement package. It explains:
LNQ has an exceptionally well qualified and experienced management team and Board. In our view it signals clear capability to discover, grow, evaluate and potentially construct a substantial gold-copper project. In addition to the existing Resource base, Gilmore offers multiple opportunities for Resource growth and exploration success in a top jurisdiction with established infrastructure that would enable capital efficient project development.
In our view, the Gilmore tenement package carries considerable value in its own right, given the high level of exploration activity being undertaken by the world's largest mining companies in a globally significant gold-copper porphyry belt.
Bell Potter has a speculative buy rating and 44 cents price target on its shares. This suggests that upside of over 100% is possible from current levels.
