Investors with a high tolerance for risk might want to check out the exciting small-cap ASX stock in this article.
That's because the team at Bell Potter has just initiated coverage on it with a bullish view.
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Which small-cap ASX stock?
The stock that Bell Potter has been looking at is Orthocell Ltd (ASX: OCC).
It is a commercial-stage regenerative medicine company focused on developing and commercialising collagen-based medical devices and autologous cell therapies. These are for the repair and regeneration of bone and soft tissue.
Bell Potter believes the company's Remplir product has a significant opportunity and could be a key commercial driver. It explains:
Orthocell's investment case is anchored by Remplir, a collagen nerve wrap used in peripheral nerve repair that is differentiated by both design and commercial positioning. The product targets an underpenetrated market where clinical need persists and adjunct device usage remains low, creating room for a next-generation solution to gain traction as surgeon familiarity, evidence and commercial access continue to build.
In this context, Remplir has the potential to become the key commercial driver of the OCC story, with adoption supported by a large procedural opportunity rather than requiring aggressive incumbent displacement.
Commercial inflection underway
The broker also highlights that the small-cap ASX stock's commercial inflection is underway at a time that its balance sheet is very strong. It adds:
OCC has moved beyond regulatory promise and into early US commercial rollout, opening access to a US$1.6bn peripheral nerve repair market. The company enters this phase well-funded, with A$49.4m of cash following its 1H FY26 capital raise, and is pursuing a more hands-on go-to-market model that combines specialist distributors with internal oversight of medical education, KOL engagement and hospital access.
This approach should enable OCC to drive early adoption in a capital-efficient manner while retaining control over the key levers of VAC conversion and surgeon uptake. Although near-term cash burn is likely to remain elevated, we expect Remplir-led revenue growth and margin expansion to progressively improve operating leverage as rollout matures.
Big potential returns
According to the note, Bell Potter has initiated coverage on the small-cap ASX stock with a speculative buy rating and $1.15 price target.
Based on its current share price of 78 cents, this implies potential upside of almost 50% for investors over the next 12 months.
Commenting on its buy recommendation, the broker said:
We initiate coverage with a BUY (spec.) recommendation and A$1.15 valuation based on a risk-adjusted DCF, which we see as more appropriate than relative multiples given OCC's early-stage commercial profile and FY29 EBITDA break-even horizon.
Our valuation is driven primarily by Remplir's US rollout, leaving the key near-term proof points centred on distributor execution, VAC conversion, surgeon uptake and repeat procedure volumes. Beyond our base case, we see additional upside from broader geographic rollout and further indication expansion, including EU/UK approval and prostate nerve repair.
