There has been plenty of analysis in the last 6 months pointing to strong tailwinds for ASX small-cap stocks.
In fact, ASX small-cap shares outperformed the larger players by almost 2.5 times in 2025.
It's important to remember that not every cheap stock is a bargain buy.
Many will fizzle out and some will even be delisted from the ASX entirely.
On the flip side, a select few will continue to grow and eventually become mid-cap or even large-cap stocks.
Here are two ASX small caps that have attractive valuations according to experts.
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Strike Energy Ltd (ASX: STX)
Strike Energy is an onshore Perth Basin gas exploration and development company with material discoveries across three advanced projects:
- Walyering (100% STX)
- South Erregulla (100% STX)
- West Erregulla (50% STX)
Walyering is currently producing gas, with sales beginning in late 2023. The West Erregulla joint venture with Hancock Prospecting may reach final investment decision in the second half of 2026, targeting production from 2028. STX also plans to develop a peaking power facility at South Erregulla to commercialise its smaller gas reserves.
According to a report from Bell Potter, there is reason for optimism surrounding this ASX small-cap.
Last week, Strike Energy reported December 2025 quarterly production at Walyering of 1.59 PJe, above expectations, with an average gas price of $7.36/GJ.
This generated $16.6 million in sales revenue. The South Erregulla 85 MW peaking gas power project is 72% complete and remains on track to begin operations by 1 October 2026. Planning and approvals for the Walyering West-1 well are progressing, with drilling expected to start in early Q2 2026.
Bell Potter said the company is leveraged to the Western Australia energy market where electricity and gas prices are expected to remain supportive.
The broker currently has a speculative buy recommendation and $0.15 price target.
That indicates an upside of 50% from current levels.
Coronado Global Resources Inc (ASX: CRN)
Coronado Global Resources is a leading international producer of high-quality metallurgical coal, an essential element in the production of steel.
It has had a strong start to 2026, rising almost 10% YTD.
However recent price targets indicate it can keep climbing.
Its success has been closely linked to the rebound in metallurgical coal prices.
Last month, Bell Potter updated its price target on this ASX small-cap stock to $0.47 (previously $0.33).
At the time of writing, Coronado Global Resources shares are hovering around $0.40.
From current levels, Bell Potter's price target indicates an upside of approximately 17.50%.
