Why this growing ASX tech share could have 45% upside

Bell Potter has good things to say about this small cap.

Looking for big potential returns and have a high tolerance for risk? If you answered yes, then it could be worth getting acquainted with the ASX tech share in this article.

That's because if the team at Bell Potter is on the money with its recommendation, this tech stock could be destined to deliver big returns over the next 12 months.

A woman presenting company news to investors looks back at the camera and smiles.

Image source: Getty Images

Which ASX tech share?

The share that has caught the attention of Bell Potter is Alcidion Group Ltd (ASX: ALC).

It is a commercial healthcare IT company with a cloud-native, modular software platform aimed at improving efficiency in hospitals, supporting interoperability, allowing for improved communication and task management, and delivering critical clinical decision support at the point of care to improve patient outcomes.

Bell Potter notes that the company has signed a major seven-year contract with UHSussex. It said:

ALC have confirmed the signing of the previously announced EPR contract with UHSussex. Financial details are largely in line with guidance from the Jan 2026 announcement when ALC was confirmed as the preferred supplier.

Key details are: (1) ~$35m total contract value (TCV) over initial 7-year period; (2) Includes rights to extend term from 7 to 10 years, which would add $14m TCV (i.e. totalling $49m over 10 years); (3) Includes option to add further modules, which would further increase TCV; (4) $8.5m revenue of the ~$35m TCV will be recognised within FY26 (an upfront capital license fee and part of the implementation fees); and (5) Implementation will take ~18 months in total with initial go live targeted for June 2027.

The broker believes that this positions the ASX tech share to deliver on its earnings guidance for FY 2026. It adds:

UHSussex is the third UK customer to adopt ALC's EPR offering, providing further credibility and 'referenceability' in the UK for future competitive tenders. The $8.5m upfront/implementation component increases FY26e contracted revenue to $52.3m based on the prior Q3 FY26 update and provides increased confidence the EBITDA guidance of >$5.0m will be achieved.

Big potential returns

According to the note, Bell Potter has retained its buy rating and 16 cents price target on the ASX tech share.

Based on its current share price of 11 cents, this implies potential upside of 45% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

The changes to FY26 forecasts have negligible impact on valuation outputs, hence our $0.16 PT and Buy recommendation remain unchanged. Upcoming catalysts are most likely to come from any new additional contracts announced over the coming months, whether in the usual quarterly updates or out of cycle.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alcidion Group. The Motley Fool Australia has recommended Alcidion Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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