If you are looking for outsized returns and have a high tolerance for risk, then it could be worth turning your attention to the ASX 300 share in this article.
That's because if Bell Potter is on the money with its recommendation, this share could be destined to rise over 80% from current levels.
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Which ASX 300 share?
The share that has been given the thumbs up by Bell Potter is Clinuvel Pharmaceuticals Ltd (ASX: CUV).
In case you're not familiar with the company, it is the pharmaceutical company behind the Scenesse (afamelanotide) treatment for patients with the rare disease erythropoietic protoporphyria (EPP).
In addition, the ASX 300 share is undertaking clinical trials to expand the approved use of Scenesse to more indications such as vitiligo.
It is the proposed expansion into vitiligo that Bell Potter has been looking at, with phase three data due to be released soon. The broker said:
CUV's first vitiligo Phase 3 trial readout (expected 2H CY26) is one of 2026's most keenly awaited ASX biotech readouts. Success would dramatically de-risk the expansion of Scenesse's approved label from the rare disease EPP (~5k Americans) to also include the far larger vitiligo indication (>2m Americans). In the event of a positive readout, we anticipate a second Phase 3 will be required (commencing in 2H CY26), hence vitiligo approval and subsequent sales would commence from ~2030.
The CUV105 trial randomised 210 patients to either Scenesse plus NB-UVB or NBUVB alone for ~5 months. A successful outcome will heavily depend on achieving a statistically significant outcome on the primary endpoint, at least in the eyes of the FDA for serving as a confirmatory study.
Big potential returns
According to the note, Bell Potter has reaffirmed its speculative buy rating on the ASX 300 share with a trimmed price target of $17.00 (from $19.00).
Based on its current share price of $9.10, this implies potential upside of 87% for investors over the next 12 months.
Bell Potter highlights that the market is attributing little value to the company's vitiligo opportunity. It said:
At an EV of $226m, there is little credit currently attributed to CUV for the vitiligo opportunity. A positive Phase 3 readout would likely see a dramatic resurgence toward our valuation as investors de-risk the path to vitiligo, while a negative readout would likely see the stock trade modestly above cash levels (~$5/sh) given recent sentiment.
Considering the relatively even chance we ascribe to positive/negative outcomes on the primary endpoint, the ~90% upside potential in the positive scenario comfortably exceeds the ~30% downside potential in the event of a failure. Hence we maintain our BUY recommendation but now include a speculative risk warning, not due to any financial instability for CUV (which is very robust), but purely due to the clinical risk profile that is fast approaching.
