Doubling your money is something every investor dreams of when buying ASX shares.
But what if you could triple your money? Well, Bell Potter thinks that could be possible with the ASX share in this article.
However, as it is a small cap, it may only be suitable for investors with a high risk tolerance.
Let's see what the broker is recommending.
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Which ASX share?
The share that Bell Potter is recommending to clients is Biome Australia Ltd (ASX: BIO).
It is a developer and commercialiser of clinically backed innovative live biotherapeutics (probiotics), marketing 18 products under the Activated Probiotics brand.
Bell Potter was relatively pleased with the company's performance during the third quarter, especially given that it is traditionally a seasonally weak quarter. It said:
BIO reported cash receipts of c.$4.9m, flat over the pcp and down on the previous two quarters. Net Operating Cash Outflow of c.-$1.2m, down from c.+$1.2m in 2Q26, reflected inventory build ahead of the peak 4Q cycle and softer cash receipts, which seems to reflect working capital timing issues. Sales were not disclosed, but we estimate sales were c.$5.5m, up c.21% yoy.
The March quarter is seasonally weak, affected by the holiday period, but this was weaker than expected based on historical patterns. BIO also increased marketing spend ahead of the cold & flu season. Cash finished flat at c.$3.4m with drawn debt at c.$2.1m and unused finance facilities at c.$2.9m.
The broker highlights that milestones are being achieved by the ASX share. This includes both sales milestones and cost milestones. It adds:
BIO has now passed the sale of 1 million boxes of its core brand Activated Probiotics on a R12M basis and is on track to deliver 100m doses through community pharmacy/ health practitioners. It is an important milestone for the business, with pharmacy scan data continuing to show BIO has the fastest growing probiotic brand within community pharmacy and is approaching the number one probiotic product in total pharmacy sales by volume and value.
BIO appears close to finalising its onshoring strategy and implementation that should deliver a structural improvement to COGS and gross margins. An update to the market is expected later this year, that should address the current concentration risk of importing 100% of product, along with freight and supply chain disruption risk. An efficient approach to onshoring should be supported by investors.
Big potential returns
According to the note, Bell Potter has retained its buy rating and $1.00 price target on the ASX share.
Based on its current share price of 31 cents, this implies potential upside of over 200% for investors between now and this time next year.
Speaking about its recommendation, Bell Potter said:
Despite some seasonal weakness, BIO has indicated that 4Q26 should be a record quarter and that FY26 should provide a step change in EBITDA performance v FY25. Our estimate of YTD sales is c.$18m and we have decided to lower our FY26e sales by c.4.1% to c.$25.6m (which would still result in a record quarter) and have offset this through a lift in our gross margin to reflect favourable movement in FX rates (AUDEUR) which have moved c.9% since 1H26.
Our EBITDA estimate is unchanged, and we have maintained our estimates beyond FY26. If BIO concludes an onshoring arrangement, there could be tailwinds to our gross profit / EBITDA estimates.
