Do you want some exposure to the small side of the market? If you do, then it could be worth listening to what Morgans is saying about the two small-cap ASX shares named below.
Here's why the broker thinks they could be buys for investors with a high tolerance for risk:
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Mach7 Technologies Ltd (ASX: M7T)
The first small-cap ASX share that could be a buy according to Morgans is Mach7. It is a provider of medical imaging software, delivering advanced data management and diagnostic viewing solutions to healthcare organisations worldwide.
Morgans was pleased with its quarterly update and the achievement of operating cashflow breakeven. It said:
M7T posted its 2Q26 cashflow report, reporting a breakeven operating cashflow following marked improvements in cash collection and a streamlined expense position through normalised billing and lower staff costs. ARR remained stable at A$23.0m, while CARR declined to A$26.1m following the known VHA and Trinity headwinds, partially offset by the first Flamingo Architecture customer win and growth from existing clients.
Execution momentum strengthened, including positive RSNA-generated leads, improved eUnity KLAS scores, and cost-outs across the organisation. Positive update and M7T appears seeded for good growth opportunities into FY27. No changes to forecasts or target price and our Buy recommendation remains.
Morgans has a buy rating and 76 cents price target on its shares.
Micro-X Ltd (ASX: MX1)
Another small-cap ASX share that has been given the thumbs up is Micro-X. It is a technology company developing and commercialising a range of innovative products for global health and security markets. These are based on proprietary cold cathode, carbon nanotube (CNT) emitter technology.
Morgans was pleased with Micro-X's quarterly update and believes there is more to come, with 2026 looking like a transformational year. It said:
MX1 posted a solid 2Q26 cash flow report. Highlights included a capital raise which has taken the funding question off the table and receipt of the largest Rover Plus order to date. Key catalysts to focus on include: receipt of additional Rover sales orders; commencement of Head CT human imaging trial; and monetisation of non-core security assets. We have made no changes to our forecasts or valuation. We maintain our SPECULATIVE BUY recommendation and believe 2026 will be a transformational year for MX1.
Morgans has a speculative buy rating and 16 cents price target on its shares.
