AML3D Ltd (ASX: AL3) shares are falling with the market on Tuesday.
At the time of writing, the ASX defence stock is down 2.5% to 20 cents.
The good news is that Bell Potter believes this could have created an incredible buying opportunity for investors.
In fact, the broker thinks that the 3D printing technology company's shares could double in value from current levels.
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What is Bell Potter saying about this ASX defence stock?
Bell Potter notes that the company released its third-quarter update earlier this week and revealed that momentum continues to build. It said:
AL3 continues to build momentum across installed capacity, system sales and parts manufacturing. An additional $12.5m in orders were placed during Q3 FY26 resulting in $20m orders year-to-date and on top of $9m in orders on hand at the beginning of FY26. Quarterly order additions included a Newport News Shipbuilding order of $9.9m for 4 ARCEMY systems and the US Navy $2.6m order for submarine components. AL3 is continuing its investments to double capacity in the US, grow its UK-Europe presence and continue its research and development push in Australia.
The broker highlights that demand for its systems from the US Navy will be key and was pleased with a recent appointment to support that relationship. It adds:
AL3 recently appointed a new US defence advisor Larissa Smith, former Director of Additive Manufacturing for the US Navy. In July 2025, AL3 announced receipt of a Letter of Intent from the US Navy which identified its Wire Additive Manufacturing technology as critical to meet demand and forecast the need for 100 WAM system installations. The LOI also identified around 400 components for the US Navy Maritime Industrial Base capable of being produced by WAM technology in 2026, increasing to 1,600 components by 2030.
Potential to double
According to the note, the broker has retained its speculative buy rating and 40 cents price target on the ASX defence stock. This is double its current share price of 20 cents.
Commenting on its recommendation, Bell Potter said:
AL3's technology is particularly suited to maritime applications, giving it strong leverage into demand growth from the US Navy's Maritime Industrial Base and the US SHIPS Act. Over FY26-27, we expect AL3 to increase deployment of ARCEMY systems to the US and Europe, increase prototyping activity and ultimately commence commercial scale production of components.
There is potential for the Navy LOI to expand beyond the Maritime Industrial Base to land-based assets. AL3 will also look to deploy its technology into non-defence sector industrial manufacturing.
