After all, if you can identify a small-cap ASX share with the potential to become a mid-cap or even a blue-chip one day, the returns can be significant.

But which small caps could be in the buy zone right now? Let's take a look at two that analysts at Morgans are recommending to clients with a higher than average tolerance for risk. They are as follows:

Camplify Holdings Ltd (ASX: CHL)

Morgans thinks that Camplify could be a small-cap ASX share to buy.

It operates one of the world's leading peer-to-peer digital marketplace platforms, connecting recreational vehicle (RV) owners to hirers. The company has operations in Australia, New Zealand, Spain, the UK, Germany, Austria, and the Netherlands.

Morgans was pleased with Camplify's performance during the first half, highlighting its lower operating costs and stronger unit economics. It said:

CHL's 1H26 result highlighted the ongoing transition underway within the business, with lower opex and stronger unit economics from the MyWay mutual and membership-led strategy. Whilst GTV decline (-17%) was a result negative, we acknowledge some of the contraction was due to CHL deliberately pulling back low-margin volume. CHL Revenue of ~A$19m was ~5% down on the pcp, With the seasonally stronger period now underway, a deeper ANZ partnership funnel (JB Group) and future bookings of ~A$32m at period-end, we expect the business to have an improved half-on-half performance.

In response, the broker has retained its buy rating with a reduced price target of 78 cents. This implies potential upside of over 100% for investors.

Readytech Holdings Ltd (ASX: RDY)

Another small-cap ASX share that has caught the broker's eye is Readytech.

It is a leading provider of mission-critical SaaS for the education, employment services, workforce management, government and justice sectors.

Morgans remains positive despite Readytech's half-year results coming in softer than expected. It said:

RDY's 1H26 result and revised outlook came in softer than expected, with Underlying EBITDA of $17.5m / Cash EBITDA of $7.5m ~6% behind MorgF. Whilst RDY's enterprise strategy remains on track, the group indicated that increased churn in 1H26 along with more protracted implementation/sale conversion have led to an FY26 guidance downgrade and the withdrawal of its longer-term targets. Whilst we downgrade our FY26-17 EBITDA forecasts by 10-20% reflecting revised guidance, given RDY's robust pipeline, potential catalysts (VIC TAFE decision and likely increased corporate appeal), we move to a SPECULATIVE BUY rating, with a revised price target of $2.20/sh (previously $3.00/sh).

As mentioned above, Morgans has put a speculative buy rating and $2.20 price target on its shares. This suggests that upside of 80% is possible between now and this time next year.

The post Morgans names 2 small-cap ASX shares to buy now appeared first on The Motley Fool Australia.

If you do, then it could be worth checking out the three ASX shares listed below that Morgans rates as buys. Here's what you need to know about them:

Camplify Holdings Ltd (ASX: CHL)

Morgans remains positive on this recreational vehicles marketplace provider despite its tough time in FY 2025.

The broker has a buy rating and $1.05 price target on its shares. Commenting on the ASX share, it said:

Camplify (CHL) has released its FY25 result. As expected, it was a tougher year overall for the group given both sector-specific impacts and company-specific disruptions which saw GTV and revenue decline ~16% and 12% respectively. However, we note an improved trajectory in the 2H, along with +8% growth in future bookings (~A$23m). We make several changes across our forecast period. Our DCF/Multiples-derived price target remains unchanged at A$1.05. Buy.

Civmec Ltd (ASX: CVL)

Another ASX share that Morgans is bullish on its construction and engineering company Civmec. It currently has a buy rating and $1.50 price target on its shares.

Morgans believes that the stage is set for its shares to re-rate to higher multiples in the near future. Particularly given its exposure to the defence market. It said:

The cyclical low point looks to have set in as CVL sees volumes (ex defence) picking up through 2H26, which suggests there are some large contracts that may land before the end of CY25. In shipbuilding, the Landing Craft Heavy program is similarly due to be awarded before CY25. The previously problematic OPV program is progressing well under CVL's guidance (and ownership from 1/07) and, remarkably, CVL expects to deliver a normal margin through FY26. CVL has already been able to drive efficiencies with undercover construction/modularisation and easy access, which positions it strongly to win future work from the Commonwealth. The stock is trading on 7x FY26 EBIT, with leverage to iron ore replacement works as well as defence spend, and we expect plenty of catalysts to drive a re-rate in the coming months. We upgrade to Buy.

Readytech Holdings Ltd (ASX: RDY)

Finally, this software company could be another ASX share to buy.

Although the broker was somewhat disappointed with its FY 2025 results, it still sees significant value on offer here for investors. Morgans has put a buy rating and $3.00 price target on its shares.

Commenting on Readytech, it said:

RDY's FY25 result was softer than consensus expectations, however Underlying NPATA of $17.3m was broadly in line with MorgF. FY26/27 guidance was downgraded, and implies a gradual step-up in run-rate as NRR improves (off a challenging FY25) through cloud migration in local government and delivering on its Enterprise wins/pipeline. Whilst we downgrade our EBITDA forecasts by -12.5% in FY26-FY27F reflecting revised guidance, we see the buildup into FY26 as being manageable. Our target price is reduced to $3.00/sh (prev. $3.45/sh), and we retain our BUY rating.

The post Morgans says these ASX shares are top buys appeared first on The Motley Fool Australia.

That's because the potential returns on offer at the small end of the market can be material. Though, it is always worth remembering that this greater reward brings greater risk.

With that in mind, let's take a look at two small cap ASX stocks that have recently been named as buys and tipped to rise strongly from current levels. Here's what you need to know about them:

Aroa Biosurgery Ltd (ASX: ARX)

This morning, Bell Potter reiterated its buy rating on small cap ASX stock Aroa Biosurgery.

It is a wound repair specialist company that uses a decellularised extra cellular matrix derived from ovine (sheep) gut.

Bell Potter has been impressed with the company's performance in FY 2024 and expects more of the same in FY 2025. Despite this, it trades at a discount to peers. The broker explains:

ARX is likely to deliver strong double digit percentage growth in FY25 and it is trading at a heavy discount to peers. Other than earnings, important catalysts include the headline data from pending scientific papers regarding the ongoing MASTRR study for Myriad in the treatment of trauma, limb salvage and colorectal surgery. The investment in these studies has been significant and we believe will have a long shelf life. The sales force is now well established and poised to take advantage of these important data releases.

Bell Potter has put a buy rating and 90 cents price target on its shares. This suggests that upside of 30% is possible over the next 12 months.

Camplify Holdings Ltd (ASX: CHL)

A second ASX small cap stock that has been given the thumbs up by analysts this month is Camplify.

It operates one of the world's leading peer-to-peer digital marketplace platforms, connecting recreational vehicle (RV) owners to hirers. It has operations in Australia, New Zealand, Spain, the UK, Germany, Austria and Netherlands.

Morgans continues to believe that the market is thoroughly undervaluing the company's shares. It likes Camplify due to its positive long term growth outlook, which is being underpinned by its large opportunity both at home and abroad. The broker recently said:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

Morgans has just put an add rating and $2.10 price target on its shares. This is more than double where they trade today.

The post 2 small cap ASX stocks with big price targets appeared first on The Motley Fool Australia.

If you do, you might want to check out the small cap ASX shares named below that brokers are tipping as buys with potential for massive returns.

Let's see what they are saying about these stocks:

Camplify Holdings Ltd (ASX: CHL)

The first ASX small cap share to look at is Camplify. It is one of the world's leading peer-to-peer digital marketplace platform providers for the recreational vehicle (RV) industry.

The team at Morgans is very bullish on the small cap. It has an add rating and $2.55 price target on its shares. This suggests that its shares could more than double in value from current levels.

It likes the company due to its positive long term growth outlook thanks to opportunity both at home and internationally. It said:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

IPD Group Ltd (ASX: IPG)

Another small cap ASX share that could be a buy is IPD Group. It is a national distributor and service provider to the Australian electrical market.

Bell Potter is bullish on the company and has a buy rating and $6.20 price target on its shares. This implies potential upside of 31% for investors.

The broker believes its is well-placed for growth in the coming years due to the electrification megatrend. It commented:

IPD Group distributes electrical equipment and technologies that support energy efficiency in building, infrastructure, and process sectors. Demand for upgrades in existing infrastructure and the scaling of IPG's EV charging business should drive future revenue and market share expansion. The group is well-positioned to capitalise on electrification trends in energy and transportation to support earnings growth.

Mach7 Technologies Ltd (ASX: M7T)

A final small cap ASX share that has been named as a buy is Mach7. It is an enterprise image management systems provider.

Analysts at Morgans are also feeling bullish on this small cap. The broker has an add rating and $1.36 price target on its shares. This is more than triple its current share price.

Morgans believes the company is positioned to deliver further strong growth over the medium term. It said:

Mach7 is a provider of enterprise image management systems that allow hospitals to identify, connect and share image and patient care data. Revenue growth of at least 20% pa is expected over the next three years.

The post 3 small cap ASX shares to buy for massive returns appeared first on The Motley Fool Australia.

That's because they were recently named as buys by brokers and tipped to rise strongly from current levels. Here's what you need to know about them:

AVITA Medical Inc (ASX: AVH)

The team at Morgans thinks that this regenerative medicine company could be a small cap ASX share to buy right now.

The broker currently has a buy rating and $4.56 price target on its shares. This suggests that upside of 45% is possible for investors over the next 12 months.

Morgans rates the company highly. It highlights that its Recell wound repair product has a huge growth opportunity. It explains:

AVH is a regenerative medicine company focusing on the acute wound care market. It has recently expanded its indication into full thickness skin defects and Vitiligo (US$5bn TAM). The expanded indication in full thickness skin defects has the required reimbursement in place and sales have started.

Camplify Holdings Ltd (ASX: CHL)

Another ASX small cap share to look at is Camplify. It is a leading peer-to-peer digital marketplace platform operator connecting recreational vehicle (RV) owners with hirers.

Morgans is a fan of the company and has an add rating and $2.55 price target on its shares. This suggests that they could more than double in value from current levels.

The broker highlights the company's positive long term growth outlook. This is thanks to opportunity both at home and internationally. It said:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

SRG Global Ltd (ASX: SRG)

Bell Potter says that SRG Global could be a top small cap ASX share  for investors to buy.

The broker has a buy rating and $1.40 price target on its shares. This implies potential upside of 25% over the next 12 months.

It highlights that this diversified industrial services company has a strong growth potential yet trades on lower than average earnings multiples. It said:

SRG's short-to-medium term outlook is reinforced by Government-stimulated construction activity in the infrastructure and non-residential sectors, and increased development and sustained capital expenditures in the resources industry. SRG is expected to generate double digit earnings growth (11% p.a. over (FY25-27)) on a 12 mth fwd P/E of ~12x.

The post These small cap ASX shares could rise 25% to 100% appeared first on The Motley Fool Australia.

Let's now take a look at two more shares that the broker is feeling bullish about right now. They are as follows:

Camplify Holdings Ltd (ASX: CHL)

Morgans continues to believe that Camplify is severely undervalued by the market.

Camplify operates one of the world's leading peer-to-peer digital marketplace platforms, connecting recreational vehicle (RV) owners to hirers.

It was relatively pleased with its performance in FY 2024 and expects a stronger performance in the new financial year. It said:

Camplify's FY24 result was broadly in line with expectations. Gross transaction volumes (GTV) increased by 13% to A$165m (less than we'd forecast) but a higher-than-expected group take-rate saw revenue broadly in line with our estimate. Whilst the PaulCamper integration impacted bookings/revenue in the period, this is largely completed, with Camplify expecting a return to a more normalised performance in FY25.

Morgans has an add rating and $2.55 price target on its shares.

Airtasker Ltd (ASX: ART)

Another ASX share that has been named as a key pick for Morgans is Airtasker.

It is a small jobs marketplace with operations across Australia, the UK, and the United States. Commenting on its performance in FY 2024, the broker said:

Airtasker's results were in line with its quarterly update released in July. Its marketplace experienced a slight 3.5% decline in GMV yoy, totaling A$190.6 million, but there was a small improvement of 1.1% in the second half of FY24. Revenue grew by 6% to A$46.6 million, driven by better monetisation rates and a 6.6% increase in gross profit to A$44.5 million. Revenue from Airtasker Marketplaces rose 9.8% to A$38.1 million, thanks to a higher monetisation rate and reduced cancellations.

Its analysts were also pleased to see the company making good progress internationally. They add:

Offshore markets are growing, with the UK showing strong results after a brand campaign, with GMV up 35% in Q4 and annual revenue up 41%. The US market, with a cautious marketing strategy, saw a 9.4% increase in GMV and a 74% rise in revenue. Airtasker also announced two more media partnerships (following Ch4 in the UK as well as oOh!Media and ARN Media domestically), these being in the US to assist its ramp of brand awareness and initial platform scaling.

Morgans has an add rating and 52 cents price target on the company's shares.

The post 2 more ASX shares that are 'key picks' for Morgans appeared first on The Motley Fool Australia.

Let's see what they are saying about these stocks:

Aeris Resources Ltd (ASX: AIS)

Bell Potter thinks that this copper miner could be a great option for investors right now.

The broker currently has a buy rating and 27 cents price target on its shares. Based on its current share price of 17 cents, this implies potential upside of 59% over the next 12 months.

Bell Potter believes the company would be a great option for investors looking for copper exposure. It explains:

AIS is a copper dominant producer with all its assets in Australia. Its near-term outlook is highly leveraged to the copper price and increasing grades and production at the Tritton copper mine. Successful delivery offers significant upside and a strategically attractive asset in Tritton, making AIS vulnerable as a corporate target. Retain Buy.

Camplify Holdings Ltd (ASX: CHL)

Another ASX small cap stock to look at is Camplify. It operates one of the world's leading peer-to-peer digital marketplace platforms, connecting recreational vehicle (RV) owners to hirers.

Morgans is feeling very bullish. It has an add rating and $2.55 price target on its shares, which suggests that upside of 92% is possible from current levels.

The broker highlights the company's positive long term growth outlook thanks to opportunity both at home and abroad. It said:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

Mach7 Technologies Ltd (ASX: M7T)

A third small cap ASX share that has been named as a buy is Mach7. It is an enterprise image management systems provider.

Morgans is also feeling bullish on this name. It has an add rating and $1.36 price target on its shares. This is more than double its current share price.

It believes the company is well-placed to deliver further strong growth over the medium term. The broker said:

Mach7 is a provider of enterprise image management systems that allow hospitals to identify, connect and share image and patient care data. Revenue growth of at least 20% pa is expected over the next three years.

The post 3 small cap ASX shares to buy for very big returns appeared first on The Motley Fool Australia.

But which small caps could be top options for investors in September? Let's take a look at two that could be worth considering:

Aroa Biosurgery Ltd (ASX: ARX)

Bell Potter thinks that Aroa Biosurgery could be a small cap ASX stock to buy.

It is a medical device company focused on wound repair. It uses a decellularised extra cellular matrix derived from ovine (sheep) gut for wound healing and soft tissue reconstruction.

The broker believes the company could be well-placed for growth over the coming years thanks to growing demand for its technology. It said:

The Myriad product achieved the highest rate of revenue growth in FY24. It is applied in the surgical setting to provide a substrate for regeneration of soft tissue and for reconstructive surgery. In FY24 revenues grew by 75% to NZ$23.3m and we expect a similar growth rate in FY25 and FY26 driven by an expanded user base and data from the Myriad Augmented Soft Tissue Regeneration Registry (MASTRR). ARX also expects to report data from its 120 patient randomised clinical trial in diabetic foot ulcer patients. The trial is investigating the healing properties of the Symphony product. Earlier studies in a very difficult patient population with advanced DFU's provided highly supportive data on the rate of wound healing.

Bell Potter has a buy rating and 90 cents price target on its shares. This implies potential upside of approximately 70% for investors from current levels.

Camplify Holdings Ltd (ASX: CHL)

Another ASX small cap stock that has been given the thumbs up Camplify.

It operates one of the world's leading peer-to-peer digital marketplace platforms, connecting recreational vehicle (RV) owners to hirers. It has operations in Australia, New Zealand, Spain, the UK, Germany, Austria and Netherlands.

Analysts at Morgans are feeling very positive about the company's long term growth outlook thanks to opportunity both at home and abroad. They explain:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

Morgans has an add rating and $2.55 price target on its shares. This is more than double where its shares are currently trading.

The post Experts name 2 small cap ASX stocks to buy for big returns appeared first on The Motley Fool Australia.

Two stocks showing mixed performance following the release of FY24 results on Wednesday are Camplify Holdings Ltd (ASX: CHL) and Bubs Australia Ltd (ASX: BUB).

While Camplify shares are flat at $1.30 apiece, they were trading more than 4% higher earlier in the session, fetching $1.35 at one point.

Meanwhile, Bubs shares are down nearly 4% to 12.5 cents apiece at the time of writing.

Let's see what these companies posted.

ASX small caps post FY24 results

Camplify shares lifted early in the session as investors responded to its FY24 earnings. The company reported a 24.9% increase in revenue for the year, reaching $47.8 million.

This was driven by a 9% rise in total bookings, tallying 89,086. As of August 26 this year, the company had $22.4 million in future bookings, up 2.4% year over year.

The total number of RVs on the platform also grew by 15.4% to 32,786, with notable fleet expansions in New Zealand and Spain.

Meanwhile, membership income increased to $5.2 million during the year, up 205% compared to FY23.

CEO Justin Hales remarked positively on Camplify's strong growth during the year:

For CHL FY24 was a period of consolidation, optimisation, and preparation. In order to position the business for further evolution and potential expansion, CHL needed to invest in consolidation of teams, systems, and procedures to enable efficiency.

In FY24 CHL undertook major projects to enable this goal including the migration of PaulCamper to the centralised CHL platform, and the implementation of a number of business improvement systems. These projects are designed to establish a foundation for growth and improvement in key metrics over the next 3-5 years.

Management says the ASX small cap remains "on track with [its] 3-5 year goals" on revenue, pre-tax earnings, fleet, and members.

We remain committed to our plan, and positive about the ability to deliver against these goals.

Bubs: Turnaround continues, and so do losses

Bubs Australia reported a 33% increase in revenue for FY24, reaching $79 million.

Growth was underscored by a continued recovery in its key export markets, particularly the USA and China.

As a result, the ASX small cap's gross margin improved by more than 11 percentage points over the year from 30% to 41%.

Growth in international markets was 13% for the year, underlined by its presence in Japan and Vietnam. This brings the four-year compounding growth rate in sales to the rest of the world to 20%.

Despite these gains, Bubs still reported a statutory net loss of $21 million. Although, this is far less than the previous year's loss of $108 million.

CEO Reg Weine expressed optimism about the company's strategic direction:

This first year in our turnaround strategy was a pivotal one and an important step in the right direction as we continue to build momentum in the USA and reset our China business. We achieved very strong growth in our two key strategic export markets, with USA revenue up 46% and China revenue up 27% on FY23. We also grew very strongly in our home market and our rest of world markets including Japan and Vietnam.

Bubs has set ambitious goals for FY25, including revenue growth of 28% to $102 million, gross margins exceeding 40%, and a break-even operating income.

While the impact of the non-recurring costs impacted our statutory loss for FY24, their absence in FY25 when coupled with the continued strong momentum in all markets and cost out initiatives, provides a clear pathway to positive trading EBITDA4 (before shared based payments) in FY25.

ASX small caps snapshot

Camplify and Bubs Australia present a tale of two ASX small caps with differing paths after their FY24 earnings results.

Camplify is down 41% in the past months, whereas Bubs has slipped over 30% into the red.

The post One up, one down: ASX small-cap shares mixed after FY24 results appeared first on The Motley Fool Australia.

After all, the potential returns on offer at the small end of the market can be significant. Though, it is always worth remembering with this greater reward, comes greater risk.

With that in mind, let's take a look at three small cap ASX stocks that have been tipped to rise strongly from current levels. Here's what you need to know about them:

Aroa Biosurgery Ltd (ASX: ARX)

Analysts at Bell Potter think that Aroa Biosurgery could be a small cap ASX stock to buy right now.

It is a wound repair specialist company that uses a decellularised extra cellular matrix derived from ovine (sheep) gut.

Bell Potter has been impressed with the company's performance in FY 2024 and expects more of the same in the coming years. It explains:

The Myriad product achieved the highest rate of revenue growth in FY24. It is applied in the surgical setting to provide a substrate for regeneration of soft tissue and for reconstructive surgery. In FY24 revenues grew by 75% to NZ$23.3m and we expect a similar growth rate in FY25 and FY26 driven by an expanded user base and data from the Myriad Augmented Soft Tissue Regeneration Registry (MASTRR). ARX also expects to report data from its 120 patient randomised clinical trial in diabetic foot ulcer patients. The trial is investigating the healing properties of the Symphony product. Earlier studies in a very difficult patient population with advanced DFU's provided highly supportive data on the rate of wound healing.

Bell Potter has a buy rating and 90 cents price target on its shares. This suggests that upside of 42% is possible over the next 12 months.

Camplify Holdings Ltd (ASX: CHL)

Another ASX small cap share that has been named as a buy is Camplify. It is the number one player in ANZ in the peer-to-peer RV rental space.

Morgans is a fan of the company due to its huge growth opportunity at home and abroad. It explains:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

The broker has an add rating and $2.55 price target on its shares. This implies potential upside of over 100% for investors.

Mach7 Technologies Ltd (ASX: M7T)

A third small cap ASX share that has been named as a buy is Mach7. It is an enterprise image management systems provider.

Morgans is feeling positive about the company's outlook and is forecasting strong revenue growth in the coming years. It said:

Mach7 is a provider of enterprise image management systems that allow hospitals to identify, connect and share image and patient care data. Revenue growth of at least 20% pa is expected over the next three years.

The broker has an add rating and a $1.56 price target on its shares. This suggests that its shares could more than double in value from current levels.

The post 3 small cap ASX stocks that could rise 40% to 100%+ appeared first on The Motley Fool Australia.

Especially when analysts are tipping the three in this article to deliver outsized returns for investors over the next 12 months.

Here's what you need to know about these buy-rated small cap ASX shares:

AVITA Medical Inc (ASX: AVH)

AVITA Medical could be a small cap to buy according to analysts at Morgans. It is a regenerative medicine company with a focus on wound care management and skin restoration with its RECELL technology.

The broker notes that the US FDA has just approved its RECELL Go product. It is an autologous cell harvesting device, harnessing the regenerative properties of a patient's own skin to treat burn wounds and full-thickness skin defects. The broker sees this a very big milestone for the company. Morgans said:

AVH has received FDA approval for its automated product, RECELL Go, for use in burns and full thickness skin defects. This approval marks a significant milestone for the company, with management expecting this device to increase adoption of the technology amongst clinicians. We have made no changes to our forecasts and recommendation.

Its analysts have an add rating and $5.60 price target on the company's shares. This implies that its shares could more than double in value.

Camplify Holdings Ltd (ASX: CHL)

Another small cap ASX share that Morgans rates highly is Camplify. It is a peer-to-peer recreational vehicle (RV) rental operator.

Morgans likes the company due to its market leadership position and its significant local and global market opportunities. It explains:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

Morgans has an add rating and $2.55 price target on its shares. This also suggests that its shares could more than double from current levels.

Universal Store Holdings Ltd (ASX: UNI)

A third small cap ASX share that is rated highly is Universal Store. It is the youth fashion retailer behind the Universal Store brand, as well as the Perfect Stranger and Thrills brands.

Bell Potter is a fan of the company and believes it is well-positioned for strong growth and improved margins. It said:

Management execution remains a key strength for UNI and we see good growth trajectory for the name given the building of core brands while growing its store rollout. In our view, the higher margin sales from the majority private label sales should become a major driver of margin improvement and earnings growth, in an expanded store footprint.

Bell Potter has a buy rating and $6.15 price target on its shares. This implies potential upside of 19% for investors.

The post Analysts name 3 small cap ASX shares to buy for big returns appeared first on The Motley Fool Australia.

That's because listed below are two ASX shares that have been tipped to deliver big returns for investors over the next 12 months.

Let's see why they could be great options for a $500 investment right now:

Camplify Holdings Ltd (ASX: CHL)

Analysts at Morgans see significant value in Camplify's shares and have them on the broker's best ideas list.

Camplify is the number one player in ANZ in the peer-to-peer recreational vehicle (RV) rental market. Morgans believes the company has a significant growth opportunity both at home and abroad. It explains:

CHL is the #1 player in ANZ in the peer-to-peer RV rental space. We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player. Some key positive points worth noting and likely drivers of medium-term growth for CHL include: 1) it has a robust take-rate for its core platform of ~32% vs PC at ~20%. We expect PC to see a marked improvement in this take-rate in time due to the roll-out of CHL's Premium Membership and insurance offering; 2) With the establishment of the MyWay MGA insurance business, CHL will likely see an overall increase in insurance revenue in Europe; 3) CHL has had 4 straight quarters of positive OCF, has ~A$26.6m cash on balance sheet and no debt.

Morgans has an add rating and $2.55 price target on its shares. If this ASX share were to rise to this level, it would turn a $500 investment into approximately $820.

Regal Partners Ltd (ASX: RPL)

Bell Potter thinks that Regal Partners could be an ASX share to buy. It is a specialist alternative investment manager that was formed in 2022 following the merger of Regal Funds and VGI Partners.

It manages a broad range of investment strategies covering long/short equities, private markets, real and natural assets, and credit and royalties on behalf of institutions, family offices, charitable groups, and private investors.

Bell Potter believes the company's shares are undervalued based on its positive growth outlook. It said:

We continue to favour RPL, given its strong organic & inorganic growth potential, and entrepreneurial culture. Following the acquisition of PM Capital and Taurus (50%) last year, the firm has shown an acceleration of inflows, strong investment performance and success in marketing new funds. We feel this strong performance is not reflected in the share price and see considerable upside.

The broker has a buy rating and a $4.02 price target on its shares. This implies a potential upside of 28%, which would turn a $500 investment into approximately $640. The broker also expects 6%+ dividend yields through to FY 2026.

The post The best ASX shares to invest $500 in right now appeared first on The Motley Fool Australia.

But which small cap ASX shares should you buy?

Listed below are three that Morgans has on its best ideas list. Here's why it is bullish on them:

AVITA Medical Inc (ASX: AVH)

This regenerative medicine company's shares could be seriously undervalued according to Morgans. Particularly given the recent expansion of the ASX small cap share's RECELL technology into new and lucrative indications. The broker commented:

AVH is a regenerative medicine company focusing on the acute wound care market. It has recently expanded its indication into full thickness skin defects and Vitiligo (US$5bn TAM). The expanded indication in full thickness skin defects has the required reimbursement in place and sales have started. AVH has provided revenue guidance for FY24 of growth of ~64% and importantly has guided to achieving profitability by 3QCY25. At the same time, the company is seeking approval by the FDA for its automated device RECELL Go, which if successful will launch 1 June 2024, and will be a meaningful driver of rapid adoption by clinicians.

Morgans has an add rating and lofty price target of $6.40.

Camplify Holdings Ltd (ASX: CHL)

This peer-to-peer RV rental operator could be a small cap ASX share to buy according to Morgans.

It likes the company due to its market leadership position in a significant global market. The broker said:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

Morgans has an add rating and $2.85 price target on its shares.

Superloop Ltd (ASX: SLC)

Another small cap ASX share to consider buying is Superloop. It is a growing telco with over 400,000 customers.

The broker is a big fan of Superloop and has named it as its top telco pick. This is thanks to its strong balance sheet and earnings and free cash flow growth. It explains:

SLC is our key telco pick. It's the fastest growing, has a solid balance sheet (virtually no debt), and the highest Free Cash Flow yield in our coverage. The share price has lifted following a substantial upgrade to earnings expectations and a takeover offer from ABB (which the SLC Board declined). Even though the share price is up ~100% over the past 6 months, earnings have more than exceeded this. EPSA and FCF have lifted ~150% over the same period so we still see good fundamental value in SLC.

Morgans has an add rating and $1.50 price target on its shares.

The post Morgans names the best small cap ASX shares to buy in May appeared first on The Motley Fool Australia.

But which small-cap ASX shares should you buy?

Listed below are three that Morgans rates very highly. Here's why it is bullish and has them on its best ideas list:

Acrow Ltd (ASX: ACF)

The first small-cap ASX share that Morgans is bullish on is Acrow. It provides the construction sector with engineered formwork, scaffolding, and screen systems solutions.

Morgans likes the company due to its positive long-term outlook, attractive valuation, and generous dividend yield. It said:

ACF is a well-managed business with leverage to growing civil infrastructure activity over the long term, especially on the east coast. Momentum remains strong and recent acquisitions will provide new avenues for growth, especially in the more stable and less cyclical Industrial Services segment. We believe the valuation remains attractive (~7.5x FY25F PE and ~5.5% yield) with potential positive catalysts from further meaningful contract wins.

The broker currently has an add rating and a $1.43 price target. This implies a potential upside of 25% for investors.

Camplify Holdings Ltd (ASX: CHL)

Another ASX small-cap share that Morgans rates highly is Camplify. It is the number one player in ANZ in the peer-to-peer RV rental space.

The broker believes that Camplify has a significant growth opportunity both at home and abroad. It said:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

Morgans has an add rating and a $2.85 price target on its shares. This suggests that a potential upside of almost 60% is possible from current levels.

Mach7 Technologies Ltd (ASX: M7T)

Finally, Morgans is also feeling positive about this enterprise image management systems provider and sees it as an ASX small-cap share to buy. Its analysts believe Mach7 is well-positioned to deliver very strong sales growth over the coming years. They said:

Mach7 is a provider of enterprise image management systems that allow hospitals to identify, connect and share image and patient care data. Revenue growth of at least 20% pa is expected over the next three years.

The broker has an add rating and a $1.56 price target on its shares. This implies a massive upside of over 100% for investors.

The post Morgans rates these ASX small-cap shares as best buys appeared first on The Motley Fool Australia.

They might be fighting through a one-off difficulty or adverse external conditions that are out of their control.

Regardless, I think these three cheap ASX shares deserve a fair go because their long-term business prospects remain solid:

Reporting season blues

Johns Lyng Group Ltd (ASX: JLG) shares plunged 20% in a single morning late last month after its half-year results were revealed.

That was despite an upgrade guidance for the current financial year.

Sales revenue and net profit after tax (NPAT) for the first half were both down year-on-year, which may have triggered the disappointment.

Five investment houses did cut their share price expectations over the next year, but CMC Invest shows 9 out of 11 analysts still rating Johns Lyng as a buy.

I think it's an excellent opportunity to pick up a quality company for cheap.

Nothing doing here

Regenerative medicine producer Avita Medical Inc (ASX: AVH) has seen its share price drop more than 12.3% since market close on 1 March.

No significant news has come out of the company, so one can only assume the valuation is changing from general market movement for biotechs.

If anything, Avita shares should be seeing increased demand because of its addition to the All Ordinaries Index (ASX: XAO) on 18 March.

The professional community is sticking firm on these cheap ASX shares. 

Nine out of 10 analysts covering the stock rate it as a buy, according to CMC Invest, with eight of those considering Avita a strong buy.

These cheap ASX shares are still a value buy

Like Johns Lyng, Camplify Holdings Ltd (ASX: CHL) shares were also burnt during reporting season.

"The stock closed down ~17% on result day, which we largely attribute to some seasonality in Camplify's key headline metrics (future bookings, gross margins, etc)," said the analysts at Morgans.

With the seasonal nature of the numbers, there has not been much movement in the opinions of fund managers in it for the long haul.

"Our price target remains unchanged and we maintain an add recommendation on the stock," said the Morgans team.

Indeed all three analysts covering Camplify still rate it as a strong buy, as shown on CMC Invest.

The post 3 struggling ASX shares to buy at a discount appeared first on The Motley Fool Australia.

After all, you don't want to be buying an ASX stock after it has already become expensive. Every cent you overpay eats into your future profit.

So here's my take on three ASX shares that I think still have plenty of room to impress:

Exposure to mining without buying mining stocks

The trouble with mining shares is their cyclicality and volatility.

Commodity prices can fluctuate wildly up and down, so the fortunes of the companies that produce minerals are unpredictable.

However, if you still want to be exposed to that sector, buying shares in a supplier might be a more reliable way to go.

RPMGlobal Holdings Ltd (ASX: RUL) provides technology and solutions to clients in the resources sector.

Over the past five years, even through COVID-19 and the inflation crisis, the RPMGlobal stock price has rocketed 313%.

And with both western and Chinese economies bound to improve in the coming years, I like the chances of this stock rising further.

Analysts at both Moelis Australia and Veritas Securities agree with me by rating RPMGlobal as a strong buy right now, according to CMC Invest.

The ASX shares that are never cheap are cheap right now

Camplify Holdings Ltd (ASX: CHL) might be very much a small cap at the moment, but its addressable market is huge.

The company operates a peer-to-peer platform that allows campervan owners to rent out their vehicles when not in use.

The startup, hailing from Newcastle in NSW, grew its revenue for the first half by a whopping 95.4%.

The market reacted negatively though, which the analysts at Morgans put down to "some seasonality" in a few metrics, such as future bookings and gross margins.

That team, plus Canaccord and Ord Minnett, are not the least bit worried about the future trajectory. All three are maintaining strong buy ratings for Camplify, as shown on CMC Invest.

This could mean that the current dip is a golden buying opportunity.

Bringing in revenue while developing future products

Telix Pharmaceuticals Ltd (ASX: TLX) continues to score goals in the tough industry of biotechnology and pharmaceutical development.

The shares are already up 11.8% so far this year, and 68% if you go back 12 months.

The great ace up its sleeve is that it already has one cancer product, Illucix, on commercial sale. This brings in revenue while it's working on other cancer diagnosis and treatment solutions.

The company recently announced its plan to acquire Canadian business ARTMS inc.

"The acquisition is crucial for the supply of 89Z and the pending rollout of Zircaix for renal cancer imaging," Bell Potter analysts said in a memo.

"Telix is validating multiple production locations for 89Zr in the US using the ARTMS core technology. The company also owns significant quantities of ultra-pure 89Y, being the raw material for production of 89Zr."

The post 3 ASX shares I think are set to soar in 2024 appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Camplify Holdings Ltd (ASX: CHL)

The Camplify share price is down 4% to $1.93. This follows news that Tourism Holdings Ltd (ASX: THL) has sold off its stake in the company. According to the release, Tourism Holdings sold its 14.14% stake in the peer-to-peer recreation vehicle rental operator for $1.90 per share. This represents a total consideration of $19.2 million.

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price is down 5% to $1.14. This may have been driven by profit taking from some investors following a strong gain this month. For example, prior to today, the fund manager's shares were up 14% since the start of March. This was driven by the release of its half-year results after the market close on 29 February.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down over 2% to $120.96. This has been caused by the mining giant's shares going ex-dividend this morning for its final dividend. In fact, if you took this dividend out of the equation, the miner's shares would be pushing higher today. Eligible shareholders can look forward to being paid Rio Tinto's $3.93 per share final dividend next month on 18 April.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is down 3% to $29.62. This has also been driven by the energy giant's shares going ex-dividend this morning. Eligible shareholders will be paid its fully franked 91.5 cents per share final dividend early next month on 4 April.

The post Why Camplify, Platinum, Rio Tinto, and Woodside shares are dropping today appeared first on The Motley Fool Australia.

The biggest one is if a business is in a cyclical industry and is temporarily out of favour with investors. If there's certainty that eventually the good times will roll around, then there's a decent argument that the shares are inexpensive.

Another is if the stock is suffering from a one-off shock. If you can decipher that in the long run the adverse impact will be negligible on the company, then the shares could be great value.

Perhaps a more unusual scenario might be that the business could be ripe for a takeover or merger. The industry could be experiencing a period of consolidation.

Having thought about these factors, here is a pair of cheap shares that I think are worth considering at the moment:

Market spooked, but the pros aren't

Camplify Holdings Ltd (ASX: CHL) shares had a bit of a shock recently.

Its contribution to the ASX reporting season last Wednesday saw the stock plunge 17% that day.

But this could be one where investors could now buy up these shares at a terrific price because the anxiety the market is feeling may well be temporary.

All three of Canaccord, Morgans, and Ord Minnett have retained their strong buy ratings, according to broking platform CMC Invest.

The day after the half-year result, Morgans explained why it disagreed with the market's pessimism:

"The stock closed down ~17% on result day, which we largely attribute to some seasonality in Camplify's key headline metrics — future bookings, gross margins, etc. 

"We make several cost and margin assumption changes over the forecast period. Our price target remains unchanged and we maintain an 'add' recommendation on the stock."

'Fundamentally undervalued' cheap shares 

Internet services provider Superloop Ltd (ASX: SLC) has been on the ASX for nine years, not doing a great deal for its poor shareholders.

The stock was sold at $1 during its initial public offering (IPO) in 2015, but it has rarely exceeded that level since first dipping under it in July 2019.

The shares were slogging it out at 87 cents when the market closed last week.

Then some furious developments over the weekend changed everything.

On Monday morning, boom rival Aussie Broadband Ltd (ASX: ABB) revealed that not only had it taken a 19.9% stake in Superloop, but it wanted to buy the whole thing for 95 cents a share.

By the end of the day the Superloop board had rejected the offer, labelling it "opportunistic" and insisting the price "fundamentally undervalues" the company.

With a warmly received half-year report behind it, Superloop and its investors seem to be confident that the outlook is brighter than what Aussie Broadband is costing it at.

Microequities chief Carlos Gil told the Financial Review that the offer was an insult.

"It's very, very far from what we consider to be fair value," he said. 

"We're very confused as to how they think they could possibly acquire it at this price."

Even though the Superloop share price has climbed past the $1 mark since Monday, this could be a situation where the story is far from finished.

Aussie Broadband clearly wants larger scale to compete with the larger telcos, and even Superloop shareholders agree the marriage makes sense.

But just not at this price.

CMC Invest currently shows all five analysts covering Superloop rating the stock as a buy.

The post 2 cheap ASX shares to add to your portfolio before they get expensive appeared first on The Motley Fool Australia.

Three ASX stocks that have fared well with analysts at Morgans are listed below. Here's what the broker is saying about them:

Camplify Holdings Ltd (ASX: CHL)

This recreational vehicles digital marketplace platform provider could be an ASX stock to buy according to Morgans. It has responded to its half-year results by retaining its add rating and $2.85 price target.

Although the market didn't like the result, the broker remains positive. It said:

The stock closed down ~17% on result day, which we largely attribute to some seasonality in CHL's key headline metrics (future bookings, gross margins, etc). We make several cost and margin assumption changes over the forecast period (details below). Our price target remains unchanged and we maintain an Add recommendation on the stock.

Corporate Travel Management Ltd (ASX: CTD)

Another ASX stock that was sold off following its results release is this corporate travel specialist. Morgans has responded by holding firm with its add rating but trimming its price target to $20.65.

While disappointed with its guidance downgrade, it believes it is worth sticking with the company. The broker said:

The quantum of the earnings downgrade is clearly disappointing. Given the aggressive pivot in earnings guidance from the AGM last year, the market may take time to rebuild its confidence in the outlook. However, if CTD delivers even close to its five-year strategy, the share price will be materially higher in time. We maintain an Add rating with a new price target.

Sonic Healthcare Ltd (ASX: SHL)

Finally, Morgans is a fan of this ASX healthcare stock and has retained its add rating with a $34.05 price target.

Although Sonic's result was "mixed", Morgans believes its turnaround targets are achievable. It said:

Uniquely, right-sizing for rapidly declining Covid-19 testing revenues (-90%) has combined with recent acquisition costs, pressuring margins and profitability. However, management remains confident in a turnaround, outlining numerous near/medium term drivers supporting underlying profitability and reflected in guidance, which we view as achievable.

The post Morgans names 3 ASX stocks to buy following results appeared first on The Motley Fool Australia.

Lucky you! It's nice to have some spare cash to buy ASX stocks, as there are always great opportunities available.

If I had that sort of money, here are two best shares I would buy at the moment:

Margin up, competitor down

I already own Resmed CDI (ASX: RMD) but would be tempted to buy more at the moment.

Last year, the healthcare stock fell off a cliff after investors panicked over the impact of new GLP-1 weight loss drugs on obesity.

While a reduction in obesity is a wonderful development for the world, the market worried that it would also reduce the incidences of sleep apnoea, which ResMed's products treat.

Many investment and medical experts at the time declared that the panic was overdone, and they were proven to be correct.

According to a Blackwattle memo to clients, ResMed's business update last month presented "data showing no negative sales impacts from GLP1 weight loss drug usage".

If anything, such treatments could be complementary.

"[ResMed's update] highlighted the benefits of combining those drugs with CPAP devices to address sleep apnoea."

The other tailwind for ResMed was the continued struggles for its biggest rival Koninklijke Philips NV (AMS: PHIA), who suffered a product safety recall a few years back.

"Philips agreed on a consent decree with the FDA, which effectively prohibits it from selling new devices in the USA in the immediate future."

The January update also showed fatter margins, which was the other major concern back in the August reporting season.

"The company reported improved gross margins following price increases, lower freight costs, currency movements and a favourable mix shift towards its new AirSense 11 product."

The best shares among small caps

In the small cap end of the market, Camplify Holdings Ltd (ASX: CHL) is looking good to me ahead of its report on Wednesday.

The $170 million company provides a technology platform for owners of caravans and motorhomes to lend out their recreational vehicles when they're unused.

The startup began in Newcastle NSW but has now expanded globally, to places like New Zealand, the UK, Spain, Germany, Netherlands and Austria.

A holding company of Citigroup Inc (NYSE: C) is Camplify's biggest shareholder, owning about 13.4% of the shares.

Camplify has put a smile on investor faces in recent times, soaring 35% over the past 10 months.

While it's not yet profitable, the business reported a 133% boost in revenue for the 2023 financial year.

The post The best ASX shares to invest $20,000 in right now appeared first on The Motley Fool Australia.