Do you have a high tolerance for risk? If you do, then it could be worth considering an investment in the small-cap ASX share in this article.
That's because Morgans believes the exciting company could be a small-cap ASX share to buy now.
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Which small-cap ASX share?
The small cap that Morgans is bullish on is 6K Additive Inc (ASX: 6KA).
It describes itself as a US-based manufacturer and trusted supplier of premium metal powders for additive manufacturing and alloy additions for the aluminium melt industry. Importantly, it notes that all its products are made from sustainable sources.
The company highlights that its manufacturing process produces the highest quality metal powders that are truly spherical, void of porosity and satellites with better unit economics than competing technologies.
What is the broker saying?
Morgans is positive on the company's outlook, highlighting that it has a growing customer base filled with some very large names. It said:
6K Additive (6KA) is a US-based advanced materials company that upcycles metal waste into engineered feedstock, producing high-value powders and alloys for aerospace, defence, medical, energy, and industrial applications. The company delivered 4Q25 revenue of US$5.6m (representing a run-rate of ~US$22.4m pa) with over 100 active customers including ABB, Boeing and Ford.
6KA has a potential sales pipeline of ~US$250m pa and plans to use proceeds from its recent IPO (Dec-25) to consolidate and scale its operations in the US. This will result in a 5x increase in powder production capacity (from 200mt to 1,000mt) and deliver significant margin improvement and production efficiency.
In light of this, the broker has initiated coverage on the small-cap ASX share with a speculative buy rating and $1.30 price target.
Based on its current share price of 88 cents, this implies potential upside of almost 50% for investors over the next 12 months.
Commenting on its speculative buy recommendation, the broker said:
We initiate coverage on 6KA with a SPECULATIVE BUY rating and a target price of $1.30. Backed by proven technology, a closed-loop model, and broad customer validation, we believe the company is well-positioned to benefit from strong demand in metal additive manufacturing and US government initiatives to reshore the sourcing and processing of critical minerals.
Trading on 3.7x FY27F (Jun Y/E equivalent) EV/Revenue versus a domestic peer median of 9.5x, we view 6KA's valuation as relatively attractive – though suited to more assertive investors.
