The team at Bell Potter has been running the rule over the tech sector and believes it has identified an ASX stock with the potential to more than double in value over the next 12 months.
However, it has warned that this pick is a speculative one, which means it may only be suitable for investors with a high tolerance for risk.
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Which ASX tech stock?
The stock Bell Potter is tipping as a speculative buy is Black Pearl Group Ltd (ASX: BPG).
It is a data technology platform provider that develops and operates a lead prospecting and marketing product suite via its proprietary Pearl Engine platform and augmented large language model.
Bell Potter notes that the ASX tech stock transforms anonymous, unstructured web visits and data layers into identifiable prospects to significantly increase efficacy for advertising and marketing spend by targeting prospects with a high intent to buy.
The broker highlights that the company outperformed expectations in the fourth quarter, with annual recurring revenue (ARR) coming in at $26.8 million. It said:
BPG delivered another ARR beat ahead of BPe, increasing by 114%/$3.1m YoY to $26.8m (BPe: $25.3m); outperformance was supported by a lift in employee efficiency (ARR per employee) to $348k (+41% YoY) and a 40bps YoY improvement in churn to 4.9%, slightly below 5% target. Recently launched DaaS product continues to see nil churn. Customer acquisition cost payback period also improved further to 3.5mths (3Q26: 3.9mths), which tracks with contributions from higher value customers.
Big potential returns
In light of this strong performance and its positive outlook, Bell Potter thinks that its shares look good value at current levels.
According to the note, the broker has retained its speculative buy rating on the ASX tech stock with an improved price target of $1.82 (from $1.76).
Based on its current share price of 82 cents, this implies potential upside of 120% for investors over the next 12 months.
Commenting on its buy recommendation, Bell Potter said:
We retain our Speculative Buy recommendation, with our valuation lifted to A$1.82/sh with no change in multiples applied/mix in EV/ARR. BPG has outlined a greater focus on revenue and cash conversion in FY27 through shortened customer ramping cycles and extracting ongoing operating leverage (+41% ARR per employee YoY). BPG looks attractive at 1.8x FY27 ARR against its growth profile, in our view.
