As the ASX heads for a relatively flat open this week, the team at Bell Potter has issued updated guidance on two ASX small-cap stocks.
These options could attract investors looking for high upside companies. However, investors should also be aware of the volatility often experienced by small-cap stocks.
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Alpha HPA Ltd (ASX: A4N)
A4N is an Australian mining company specialising in high purity alumina (HPA). HPA is a key component of lithium-ion batteries, LED lighting, and has other essential commercial applications.
A4N's HPA First Project in Gladstone (Queensland) is aiming to supply high-purity aluminium-based products to the semiconductor, lithium-ion battery, and light emitting diode (LED) manufacturing sectors. The project's proprietary technology is expected to disrupt incumbent HPA production through delivering ultra-high purity products with significantly lower unit costs.
This ASX small cap has dropped roughly 15% year to date; however, it did rebound during April.
It closed last week at 65 cents per share.
However, the team at Bell Potter is anticipating a significant rise over the next 12 months.
The broker has a price target of $1.50, along with a speculative buy rating.
This target indicates an upside potential of 130%.
Much of this optimism was reinforced by the company's recent quarterly activities report.
The broker said the March 2026 quarterly report illustrates increasing interest and demand for its high purity aluminium products from the semiconductor sector.
Quarterly sales from the Stage 1 facility increased to 4.2t (prior quarter 2.0t), at a weighted average unit price of US$30.53/kg (prior quarter US$28.85/kg).
A4N's process delivers products with unmatched purity and bespoke morphology which provide value-in-use advantages in these applications. The rollout of AI data centres is driving demand for higher computing efficiency; A4N is increasingly leveraged to this theme.
Strike Energy Ltd (ASX: STX)
Strike Energy engages in the exploration and development of oil and gas resources. Its projects include Copper Basin and Perth Basin.
This ASX small-cap has fallen significantly in the last 12 months, but is receiving a positive outlook from Bell Potter.
Over the past year, its share price has fallen 33%.
It closed last week at 12 cents per share.
However, the team at Bell Potter has a speculative buy rating. Additionally, the broker has a price target of 16 cents, indicating a 33% upside.
The broker said this ASX small cap is leveraged to the Western Australia energy market, where electricity and gas prices are expected to remain supportive.
