Given the potential returns on offer with small-cap ASX shares, it really can pay to have some exposure to this side of the market in a balanced portfolio.
But which small caps could be worth considering if your risk tolerance allows for it?
Well, listed below are three that Morgans recently rated as buys and is tipping to rise strongly from current levels. Here's what you need to know about them:
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Airtasker Ltd (ASX: ART)
This small job listings company could be a small-cap ASX share to buy according to the broker.
It currently has a buy rating and 51 cents price target on its shares. This is more than double its current share price of 23 cents. It said:
It was a resilient 1H26 result for Airtasker, delivering ~13.5% group revenue growth to ~A$29m. Its established marketplaces saw EBITDA growth of ~11% to ~A$15m. Domestic metrics appear sound (e.g. uptick in booked tasks and brand salience), and we remain pleased with the momentum seen in ART's offshore marketplace build-out (UK/US revenue +85% and 380% on the pcp respectively).
We make minor adjustments to our topline forecasts (details below), we also include the additional $5m cash marketing costs into our 2H numbers along with the recent capital raise. Our price target is lowered to A$0.51. Buy maintained.
Meeka Metals Ltd (ASX: MEK)
Another small-cap ASX share that has caught the eye of Morgans is gold miner Meeka Metals.
Morgans was pleased with management's production growth plans and is expecting a "step-change in output" in the fourth quarter.
As a result, it has put a buy rating and 39 cents price target on its shares. This is also more than double its current share price of 17 cents. It said:
MEK announced an expansion to 800ktpa (equivalent ounce basis) via ore sorting, requiring modest capex of A$6m with commissioning scheduled for Q1FY27. Ore sorting effectively near doubles Andy Well underground head grade, lifting our annual production forecasts by an average of 7% from FY27 onwards. Open Pit throughput has tracked below DFS forecasts due to moisture-driven variability in open pit ore, an issue expected to resolve with underground stope commencement in 4QFY26.
We revise our FY26 production forecast to 37.6koz Au (from 40.2koz), this is below the DFS guidance. We maintain our BUY rating and A$0.39ps price target, acknowledging near-term production softness may weigh on the 3Q result ahead of an anticipated step-change in output in 4Q.
Readytech Holdings Ltd (ASX: RDY)
A final small-cap ASX share that Morgans rates highly is enterprise software provider Readytech.
Although it has downgraded its earnings estimates to reflect its revised guidance, the broker remains positive. This is due to its robust pipeline and potential near-term catalysts.
Morgans has a speculative buy rating and $2.20 price target on its shares. This implies potential upside of 85% for investors over the next 12 months. It said:
RDY's 1H26 result and revised outlook came in softer than expected, with Underlying EBITDA of $17.5m / Cash EBITDA of $7.5m ~6% behind MorgF. Whilst RDY's enterprise strategy remains on track, the group indicated that increased churn in 1H26 along with more protracted implementation/sale conversion have led to an FY26 guidance downgrade and the withdrawal of its longer-term targets.
Whilst we downgrade our FY26-27 EBITDA forecasts by 10-20% reflecting revised guidance, given RDY's robust pipeline, potential catalysts (VIC TAFE decision and likely increased corporate appeal), we move to a SPECULATIVE BUY rating, with a revised price target of $2.20/sh (previously $3.00/sh).
