When scouting for companies that might deliver outsized gains, it's often useful to look at the smaller end of the market.
The analyst team at Bell Potter has done just this and released two research reports on ASX small caps that they think will almost double in value.
Let's see who they like.
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Austco Healthcare Ltd (ASX: AHC)
This company announced two acquisitions last week, buying RTM Solutions for $15.3 million and CareTech for $4 million.
RTM is a Brisbane-based provider of real-time monitoring, reporting, and systems-integration software for healthcare and aged care facilities, while CareTech makes nurse call products and systems for aged care and smaller hospital customers.
Austco said regarding the RTM deal:
Austco sees strong demand across its global customer base for proactive system monitoring and intends to take the platform to its international customers. The acquisition is expected to grow Austco's software and recurring service revenue, strengthen its proactive monitoring and maintenance capabilities, and broaden the integration functionality available across Austco's global customer and installed base.
Austco said it would fund both acquisitions from existing cash reserves, and would have $7.7 million of cash on hand following the closure of the deals.
Bell Potter said between CareTech and RTM, "AHC delivers customers a single, cost-effective provider for care communications at the bedside, and real-time monitoring of every connected system on site''.
The broker increased its price target for Austco from 45 cents to 50 cents, compared to the current share price of 26.5 cents.
If achieved, this would be an 88.7% return.
Omega Oil & Gas Ltd (ASX: OMA)
Bell Potter analysts recently attended a site visit hosted by Omega at its Taroom Trough acreage, which included the Canyon North-1 wellsite where a drilling rig was recently mobilised.
The visit included investors, including Omega's 20% shareholder TriStar.
Bell Potter said:
What was clear is OMA's deep technical expertise, meticulous approach to building a high-quality Taroom Trough subsurface dataset and success working alongside land-owners to facilitate access.
Bell Potter said the current appraisal program was fully funded, with costs estimated at $55 million to $60 million, and that the company had $102 million in cash and no debt.
They said the current appraisal program "has the potential to materially expand the demonstrated extent and resource potential of the basin-centred Permian oil and gas system''.
Bell Potter added:
OMA is de-risking a new unconventional oil and gas play close to Australia's east coast energy markets. Over 2026-27, OMA's appraisal program will produce ongoing news flow and is designed to add significant scale to its current resource. Australia's east coast gas market is attractive with established basins in decline, limited sources of new supply and secure demand from domestic and export customers.
The broker has a price target of $1.40 for Omega shares, compared with 76 cents currently.
If achieved, this would be an 84.2% return.
