Morgans says these small-cap ASX shares could rise 85%+

Big things are expected from these small-caps.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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:

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.

Image source: Getty Images

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).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ReadyTech. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Airtasker. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Small Cap Shares

Pile of sporting equipment against a white background
Small Cap Shares

Why this ASX small-cap could be the most interesting tech stock on the ASX right now

Catapult Sports just delivered a record result and surged 23% in two days. But the longer-term story may be even…

Read more »

A smiling young surf life saver at the beach shouts out on a megaphone.
Small Cap Shares

Bell Potter tips nearly 300% upside for one of these ASX small-caps

One of these ASX small-caps is tipped to explode.

Read more »

A young joyful couple is watching a movie with their daughter in the cinema.
Technology Shares

Here's why Vista Group shares are charging 8% higher today

The company announced a major new long-term agreement with Mexican cinema giant Cinépolis.

Read more »

Woman handling a pile of hardware timber.
Small Cap Shares

Could this rebounding ASX small cap still have a long growth runway?

Record results, big ambitions, and one very volatile small-cap share price.

Read more »

A young man wearing glasses and a denim shirt sits at his desk and raises his fists and screams with delight.
Broker Notes

Bell Potter says this small-cap ASX share could rise 50%

Let's see what the broker is recommending to clients this week.

Read more »

A woman in a red dress holding up a red graph.
Small Cap Shares

Shaw and Partners says these two ASX small-cap companies could have some serious upside

These very different technology companies are worth a look.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Small Cap Shares

Morgans names 2 small-cap ASX shares to buy

The broker has picked out these shares as potential buys this week.

Read more »

Two boys looking at each other while standing by the start line with two schoolgirls.
Small Cap Shares

Are these ASX small-cap shares a buy, hold or sell according to Bell Potter?

Do these small-caps have potential?

Read more »