But which small caps could be worth considering if your risk tolerance allows for it?

Well, listed below are three that Morgans recently rated as buys and is tipping to rise strongly from current levels. Here's what you need to know about them:

Airtasker Ltd (ASX: ART)

This small job listings company could be a small-cap ASX share to buy according to the broker.

It currently has a buy rating and 51 cents price target on its shares. This is more than double its current share price of 23 cents. It said:

It was a resilient 1H26 result for Airtasker, delivering ~13.5% group revenue growth to ~A$29m. Its established marketplaces saw EBITDA growth of ~11% to ~A$15m. Domestic metrics appear sound (e.g. uptick in booked tasks and brand salience), and we remain pleased with the momentum seen in ART's offshore marketplace build-out (UK/US revenue +85% and 380% on the pcp respectively).

We make minor adjustments to our topline forecasts (details below), we also include the additional $5m cash marketing costs into our 2H numbers along with the recent capital raise. Our price target is lowered to A$0.51. Buy maintained.

Meeka Metals Ltd (ASX: MEK)

Another small-cap ASX share that has caught the eye of Morgans is gold miner Meeka Metals.

Morgans was pleased with management's production growth plans and is expecting a "step-change in output" in the fourth quarter.

As a result, it has put a buy rating and 39 cents price target on its shares. This is also more than double its current share price of 17 cents. It said:

MEK announced an expansion to 800ktpa (equivalent ounce basis) via ore sorting, requiring modest capex of A$6m with commissioning scheduled for Q1FY27. Ore sorting effectively near doubles Andy Well underground head grade, lifting our annual production forecasts by an average of 7% from FY27 onwards. Open Pit throughput has tracked below DFS forecasts due to moisture-driven variability in open pit ore, an issue expected to resolve with underground stope commencement in 4QFY26.

We revise our FY26 production forecast to 37.6koz Au (from 40.2koz), this is below the DFS guidance. We maintain our BUY rating and A$0.39ps price target, acknowledging near-term production softness may weigh on the 3Q result ahead of an anticipated step-change in output in 4Q.

Readytech Holdings Ltd (ASX: RDY)

A final small-cap ASX share that Morgans rates highly is enterprise software provider Readytech.

Although it has downgraded its earnings estimates to reflect its revised guidance, the broker remains positive. This is due to its robust pipeline and potential near-term catalysts.

Morgans has a speculative buy rating and $2.20 price target on its shares. This implies potential upside of 85% for investors over the next 12 months. 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 FY26-27 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).

The post Morgans says these small-cap ASX shares could rise 85%+ appeared first on The Motley Fool Australia.

After all, the potential returns from small-cap ASX shares can be significantly greater than those on offer with large caps.

With that in mind, here are two small-cap shares that Morgans thinks could rise strongly from current levels. Let's see what it is recommending:

Clinuvel Pharmaceuticals Ltd (ASX: CUV)

This biopharmaceuticals company disappointed Morgans during the first half, with softer-than-expected revenue growth and higher-than-expected cost growth.

However, the broker remains positive, especially given that this small-cap ASX share trades on lower-than-normal multiples.

As a result, the broker has put a speculative buy rating and $13.00 price target on its shares. This implies potential upside of 30% for investors from current levels. It said:

CUV delivered a softer result that landed below expectations, with top line underperformance and operational cost growth materially outpacing revenue. The combination of slower revenue growth, heavier opex, FX drag, and margin compression makes for an underwhelming print relative to expectations.

While fundamentally cheap with a large cash balance providing valuation support and trading well below historical multiples, the outlook continues to hinge on clinical catalysts and a change in sentiment (strategic direction driven) which we view is unlikely to shift meaningfully in the near term. Minor downgrades due to higher OpEx base and adjustments to WACC. Our target price reduces to A$13 (from A$14) but retain a SPECULATIVE BUY recommendation.

Readytech Holdings Ltd (ASX: RDY)

Another small-cap ASX share that Morgans is positive on is enterprise software company Readytech.

While it also delivered a half-year result that was softer than expected, the broker remains bullish due to its cheap valuation and strong sales pipeline. It has a speculative buy rating and $2.20 price target on Readytech's shares, which suggests that upside of almost 80% is possible over the next 12 months. Morgans 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).

The post Morgans says these small-cap ASX shares could rise 30% to 80% appeared first on The Motley Fool Australia.

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.

That's because the team at Morgans has recently named a couple of ASX shares as buys with the potential to rise by 30% or more between now and this time next year.

Let's see what the broker is recommending to clients and why it is feeling upbeat on these names this month. Here's what you need to know about them:

Nanosonics Ltd (ASX: NAN)

Morgans thinks that this infection prevention company's shares are being undervalued by the market.

After reviewing its guidance for FY 2026 and taking into account tariff impacts, the broker has retained its buy rating on the ASX share with a trimmed price target of $5.00. Based on its current share price of $3.84, this implies potential upside of 30% for investors over the next 12 months. It commented:

We have updated our forecasts following a deeper review of guidance provided and management commentary, particularly around tariff impacts and CORIS commercialisation timing. While near-term earnings are trimmed, these changes are immaterial to the long-term investment thesis, which remains anchored by recurring revenue growth, installed base expansion, and CORIS' medium-term potential. Our valuation and target price moderates to A$5.00 (from A$5.50) and we retain our BUY recommendation.

Readytech Holdings Ltd (ASX: RDY)

Another ASX share that could offer major upside potential according to Morgans is mission critical software provider Readytech.

Although its performance has underwhelmed this year and its earnings estimates have been trimmed, the broker remains positive on its future.

As a result, it has put a buy rating and $3.00 price target on its shares. Based on its current share price of $2.19, this suggests that a return of 37% is possible between now and this time next year. Morgans commented:

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 could rise 30%+ 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.

Shares in the software as a service (SaaS) provider currently fetch $2.80 apiece, down more than 15% as investors react to the update.

Let's jump in and see what the company posted.

ReadyTech shares slide after 1H FY25 results

Readytech posted a number of interesting updates in its half-yearly results. Here are some of the takeouts:

• Total revenue increased by 6.6% to $58.3 million
• Pre-tax income of $18.2 million, up 4.6% year over year, resulting in a margin of 31.2%
• Non-cash impairment of $20.6 million against goodwill and related assets for the Government & Justice segment
• Enterprise pipeline now stands at over $37.5 million

What else happened in FY25?

ReadyTech shares caught a decent bid during the first half, and the company notes it has reached "an inflection point".

Revenues were up nearly 7% on the year, and the inflection point in question is made up of the "depth of current sales opportunity pipeline and advanced stage opportunities", per the company.

The company also said the acquisition of CouncilWise has been successful in "unlocking new opportunities" in the Local Government sector.

As a positive, net revenue retention came in 102%, but the segment saw delays as ReadyTech rolls over customers to a "complete cloud platform".

Despite these progress notes, ReadyTech shares continue trending lower today following the update.

What did management say?

ReadyTech Co-Founder and CEO Marc Washbourne commented positively on the first half.

ReadyTech has made significant progress in delivering on our enterprise strategy, securing key new customers and expanding within our existing base over the first half of FY25. Revenue grew 6.6% driven by strong contributions from Education, Workforce Solutions and Justice, with growth trajectory maintained with new contract wins and upsell momentum. Our disciplined approach to targeting high-value enterprise opportunities has supported sustained segment EBITDA margins and ongoing subscription revenue growth.

Our pipeline is gaining strength in conviction, bolstered by multiple advanced-stage contract opportunities. In addition, the recent CouncilWise acquisition has reinforced this momentum, addressing a product reference gap and unlocking new opportunities in Local Government. With these strategic moves, ReadyTech is set for continued success that will translate into tangible growth in the second half and beyond.

What's next?

Washbourne also gave fairly detailed guidance for ReadyTech for the full year.

Our enterprise pipeline of $37.5 million, including $13.5 million in shortlisted and preferred stage opportunities, provides strong visibility into future growth. While Local Government revenue isexpected to remain stable, other segments are on track for double-digit growth, resulting in overall Group revenue increasing at high single-digits in FY25.

As we continue scaling our solutions and the depth of current sales opportunity pipeline and active tenders forming an inflection point for a return to mid-teens growth, underpinning a revenue target of $160 million -$170 million by FY27.

ReadyTech share price snapshot

Investors have reacted swiftly to ReadyTech's first-half numbers, with shares deep in the red from the open.

Zooming out, the stock is up more than 6% this year to date.

The post Readytech shares slide 15% as company 'reaches inflection point' appeared first on The Motley Fool Australia.

That's because they have been named as buys and tipped to generate big returns in 2025. Here's what analysts are saying about them:

Bluebet Holdings Ltd (ASX: BBT)

The first small cap ASX stock that could deliver big returns for investors is sports betting company Bluebet.

Morgans is very positive on Bluebet after it posted "another strong quarterly result." It also highlights that "the company achieved an EBITDA positive half earlier than expected, driven by accelerated synergy gains and solid trading performance."

The broker expects more of the same and anticipates a strong result later this month. It said:

Encouragingly, BBT reports that 2Q25 trading momentum has carried into 3Q25. We expect a statutory benefit in 1H25 following the US exit, though some costs from the wind-down will offset this. The company reaffirmed its confidence in achieving over 10% market share through both organic and inorganic growth. BBT will release its interim result on 27 February 2025. We have taken our forecast FY25 EBITDA up from $4.2m to $4.9m.

Morgans has put an add rating and 43 cents price target on its shares. This implies potential upside of 15% for investors from current levels.

Bubs Australia Ltd (ASX: BUB)

The team at Ord Minnett think that this infant formula company could be an ASX small cap stock to buy now.

The broker highlights that after getting rid of its previous wealth-destroying management team, Bubs now looks well-managed and positioned for a successful turnaround. It said:

‍After eight years, several false starts including a costly one into China, a sacked founder, a failed board spill, and a staggering $316 million in equity injections, is it safe to mention the name Bubs in investment circles? We are of the view that it is.

For any investor that has previously written-off the company, we believe it is time to revisit Bubs get exposure to what we forecast to be an outstanding 2025 turnaround story. Bubs is currently displaying all of the essential ingredients for a successful turnaround, i.e. anew and competent management team that has had enough time to steady the ship, a good product with sufficient gross profit (GP) margins, and a multi-year double-digit growth profile.

Ord Minnett recently initiated coverage on Bubs with a buy rating and 20 cents price target. This suggests that upside of over 70% is possible for investors over the next 12 months.

Readytech Holdings Ltd (ASX: RDY)

Finally, Morgans also rates this software provider as an ASX small cap stock to buy right now.

Its analysts think that Readytech's shares are too cheap considering its strong earnings growth outlook. The broker said:

RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans has an add rating and $3.74 price target on its shares. This implies potential upside of 18% for investors.

The post These small cap ASX stocks could rise 15% to 70% appeared first on The Motley Fool Australia.

In fact, there are some exciting companies that are flying under the radar, trading at low prices despite strong growth potential.

Named below are two ASX hidden gems that are currently trading under $5 but could offer significant upside in the years to come.

While these stocks may not be household names, they have promising outlooks, are rated as buys by brokers, and have the potential to reward patient investors. Let's take a look at them:

Readytech Holdings Ltd (ASX: RDY)

The team at Morgans thinks that Readytech is an ASX hidden gem to buy.

It is a software as a service (SaaS) provider of mission critical software to the tertiary education, government, justice, and enterprise markets.

Morgans believes the company's shares are undervalued at current levels given its strong earnings growth outlook. It said:

Its products include student management, payroll and HR solutions, and enterprise resource planning (ERP) to local government and legal case management. RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans has an add rating and $3.74 price target on its shares. This implies potential upside of 18% for investors over the next 12 months.

Rural Funds Group (ASX: RFF)

Another ASX hidden gem that could be a buy is Rural Funds.

It is a property company with a focus on agricultural assets. This includes almond and macadamia orchards, premium vineyards, water entitlements, cropping and cattle farms. These are all leased to major industry players on long term contracts with rental increases built in.

Bell Potter is a fan of the company and believes the market is significantly undervaluing its shares. It said:

The ~33% discount [now even greater] to market NAV appears excessive when we consider the material improvement in counterparty profitability indicators in recent months (with cattle, almond and macadamia nut prices all rallying off the lows) and that farming assets have in general largely held values through 1HCY24. In addition we note that RFF has a history of delivering NAV growth (CAGR +11%pa FY15-24) through investment, with macadamia the next pillar.

Bell Potter has a buy rating and $2.50 price target on its shares. This suggests that upside of over 50% is possible from current levels. The broker also expects 7%+ dividend yields in FY 2025 and FY 2026.

The post 2 under-$5 ASX hidden gems worth your attention appeared first on The Motley Fool Australia.

Here's what analysts are saying about these buy-rated shares right now:

Accent Group Ltd (ASX: AX1)

This footwear retailer could be a no-brainer buy right now according to analysts at Bell Potter.

The broker believes that the owner of The Athlete's Foot, Platypus, Hype DC, and Stylerunner (to name just four) is well-placed for growth in the future. Particularly given the potential rollout of the Sports Direct banner in Australia.

Commenting on the ASX All Ords share, the broker said:

Despite a value consumer weighing on most consumer discretionary names including AX1 at present, we remain optimistic on interest rate cut related catalysts and remain constructive on AX1's scale & exposure in terms of channels, brands & size in addition to growing a vertical brand strategy (~8% on owned sales) and growth adjacencies within TAF & via exclusive partnerships with globally winning brands as Hoka.

We also view the strategic investment by FRAS in AX1 (~15%) and conclusion of negotiations expected in 2H to unlock the sizable store roll-out opportunity of FRAS's core Sports Direct banner in Australia.

Bell Potter has a buy rating and $2.60 price target on its shares. This implies potential upside of 19% for investors. It also expects a fully franked 6% dividend yield in FY 2025.

Readytech Holdings Ltd (ASX: RDY)

The team at Morgans thinks that Readytech could be an ASX All Ords share to buy.

It is a leading software as a service (SaaS) provider of mission critical software to the tertiary education, government, justice, and enterprise markets. The company highlights it creates technology that helps customers navigate complexity, while also delivering meaningful outcomes.

Compared to other tech stocks, Readytech gets very little love from investors. This is despite having a very positive growth outlook.

It is for this reason that Morgans believes its shares offer "compelling value" at present. The broker said:

Its products include student management, payroll and HR solutions, and enterprise resource planning (ERP) to local government and legal case management. RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans has an add rating and $3.74 price target on its shares. This suggests that upside of 17% is possible for investors.

The post 2 no-brainer ASX All Ords shares to buy with $2,000 appeared first on The Motley Fool Australia.

That's because analysts are feeling very positive about these shares and have recently put a buy rating on them.

Here's what they are saying about these growth shares:

Domino's Pizza Enterprises Ltd (ASX: DMP)

While its growth may have been lacking in recent times, the team at Goldman Sachs believes that now could be the time to snap up this pizza chain operator's shares.

The broker sees a lot of value in its shares at current levels. Particularly given its belief that Domino's earnings are now bottoming following a difficult period. It said:

We believe that DMP's renewed focus on store unit economics and re-investment to ignite topline growth is rightly placed. While there is still significant progress to be made, we believe that earnings has troughed in FY24 and see a path of improvement through FY25.

The broker has a buy rating and $39.10 price target on its shares.

Life360 Inc (ASX: 360)

Goldman Sachs also believes that Life360 could be an ASX growth share to buy with your $500.

It is the location technology company behind the hugely popular Life360 app. At the last count, there were over 70 million monthly active users (MAU) across more than 150 countries using this app to keep their family safe.

Goldman likes the company due to its belief that it is still only in the early stages of its growth. It said:

We believe Life360 remains in the early stages of its multi-year revenue growth opportunity, with subscription growth momentum continuing at scale in the US and internationally, as well as a new high-margin revenue stream in advertising.

Goldman has a buy rating and $25.00 price target on Life360's shares.

Readytech Holdings Ltd (ASX: RDY)

Finally, Morgans thinks that Readytech could be a good option for your $500.

It is a leading software as a service (SaaS) provider of mission critical software to the tertiary education, government, justice, and enterprise markets.

Commenting on the ASX growth share, the broker said:

RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans has an add rating and $3.74 price target on its shares.

The post 3 ASX growth shares to buy with $500 now appeared first on The Motley Fool Australia.

That's because they have just been named as buys and tipped to rise materially from current levels.

Here's what analysts are saying about these small caps in January:

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

The first small cap ASX share for investors to look at is Paradigm Biopharmaceuticals.

It is a biotechnology company that is focused on repurposing Pentosan Polysulfate Sodium (PPS) for the treatment of osteoarthritis (OA) in the knee.

The team at Bell Potter believes the company would have a lucrative market opportunity if it is approved. IT notes that the "global market for a safe, effective treatment that provides superior patient outcomes compared to the standard of care is a multiple blockbuster." The broker adds:

In the US along the incidence of moderate to severe osteoarthritis is estimated at 30m persons. The pricing of the drug will ultimately be determined by the economic benefit associated with its use as well as the cost of other therapies. The conservative estimate is US$2,500 per year which places the addressable market in the tens of billions of US$.

Bell Potter has a speculative buy rating and 80 cents price target on its shares last week. Based on its current share price of 46.5 cents, this implies potential upside of approximately 72% for investors over the next 12 months.

Readytech Holdings Ltd (ASX: RDY)

Another small cap ASX share that could be a buy according to analysts is Readytech.

Readytech is a software as a service (SaaS) provider of mission critical software to the tertiary education, government, justice, and enterprise markets.

The team at Morgans believes that the company would be a great option for investors right now due to its strong earnings growth outlook and attractive valuation. It explains:

Its products include student management, payroll and HR solutions, and enterprise resource planning (ERP) to local government and legal case management. RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years.

Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans has an add rating and $3.74 price target on its shares. This implies potential upside of 19% for investors over the next 12 months.

The post Why these small cap ASX shares could deliver very big returns in 2025 appeared first on The Motley Fool Australia.

Listed below are a couple of top ASX growth stocks that analysts have recently named as buys. Let's see what they are saying about these growing companies this month:

Breville Group Ltd (ASX: BRG)

The first ASX growth stock that could be a buy according to analysts is Breville.

It designs, develops, markets, and distributes small electrical kitchen appliances in the consumer products industry. As well as the eponymous Breville brand, the company's portfolio includes the Kambrook, Baratza, Sagem and Lelit brands.

Analysts at Ord Minnett are positive on the company. Particularly given how they believe that the company is on the brink of a return to form with accelerating sales growth. This is expected to be driven by new products and acquisitions. The broker recently said:

Breville has experienced a notable decline in its return on capital over the past five years, but Ord Minnett views FY24 as the cyclic allow for returns. Our projections indicate a rebound as sales growth accelerates and operational leverage improves. This sales growth is expected to stem from improved sales momentum, innovative product development, and recent strategic acquisitions.

Ord Minnett currently has an accumulate rating and $38.00 price target on the company's shares.

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth stock that could be a buy right now according to analysts is Readytech.

It is a leading software as a service (SaaS) provider of mission critical software to the tertiary education, government, justice, and enterprise markets.

The team at Morgans is bullish on the company. With its shares trading at a deep discount to historic averages despite having strong growth prospects, its analysts believe that the software company is a great example of growth on offer at a reasonable price. They recently said:

Its products include student management, payroll and HR solutions, and enterprise resource planning (ERP) to local government and legal case management. RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans currently has an add rating and $3.74 price target on its shares.

The post Brokers say these ASX growth stocks are top buys appeared first on The Motley Fool Australia.

For example, the two shares listed below could be undervalued and offer major upside according to analysts. Here's why they think they are cheap:

GQG Partners Inc (ASX: GQG)

Goldman Sachs thinks that this embattled fund manager's shares have been oversold in recent months.

Especially after its funds under management (FUM) were only modestly impacted by its investments in the Adani Group. It explains:

We retain our Buy rating on GQG: We lower our PT to $2.80 from A$3.00 to reflect the relatively muted impact on flows to date despite an outsized share price reaction resulting in a year P/E of <9x. We've moderated our flows reflecting some slowdown, albeit manageable in our view.

GQG is a global asset manager with an active equity focus. We are Buy rated on GQG because: 1) Net flow trajectory has been very strong 2) Strong performance has resulted in performance fees becoming increasingly more material 3) Medium and long term relative performance strong 4) Attractive valuation vs. peers in context of very strong earnings growth. 5) Impacts from Adani appear manageable.

As mentioned above, Goldman has a buy rating and $2.80 price target on the ASX share. Based on its current share price of $2.07, this implies potential upside of 35% for investors over the next 12 months.

Readytech Holdings Ltd (ASX: RDY)

Analysts at Morgans think Readytech could be a cheap ASX share to buy. It is a leading software as a service (SaaS) provider of mission critical software to the tertiary education, government, justice, and enterprise markets.

Morgans believes its shares are undervalued, making it a prime example of growth at a reasonable price (GARP) on the Australian share market. It explains:

Its products include student management, payroll and HR solutions, and enterprise resource planning (ERP) to local government and legal case management. RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans has an add rating and $3.74 price target on its shares. Based on its current share price of $3.08, this implies potential upside of 21% for investors between now and this time next year.

The post 2 dirt cheap ASX shares to buy for 2025 appeared first on The Motley Fool Australia.

If you are, then it could be worth considering the two small cap ASX shares listed below.

That's because analysts have just named them as buys and are tipping them to rise by approximately 20% to 50% over the next 12 months.

Let's dig deeper into why they think they could be great options for investors right now. Here's what they are saying:

Develop Global Ltd (ASX: DVP)

The first small cap ASX share that is rated as a buy is Develop Global.

It is a mining and mining services company with a lot of potential according to Bell Potter.

Its two mining assets are the Woodlawn Zinc-Copper Mine and the Sulphur Springs Zinc-Copper Project.

Whereas it is servicing a ~$400 million mining contract delivering development and production activities at the Bellevue Gold Mine and a $46 million underground development contract for the Mt Marion lithium project.

Bell Potter believes the company's earnings are about to transform for the better. It said:

DVP has demonstrated impressive execution of workflows to date to enable a timely and within-budget restart of operations at its flagship Woodlawn operations. Ramping production in FY26 is expected to coincide with increasing activity at the Mining Services business, delivering a transformation in the company's EPS outlook.

Bell Potter has a buy rating and $3.50 price target on its shares. This suggests that upside of over 50% is possible from current levels.

Readytech Holdings Ltd (ASX: RDY)

Another small cap ASX share that could be a buy according to analysts is Readytech. It is a leading software as a service (SaaS) provider of mission critical software to the tertiary education, government, justice, and enterprise markets.

Morgans believes that the software company is a great example of growth on offer at a reasonable price. It said:

Its products include student management, payroll and HR solutions, and enterprise resource planning (ERP) to local government and legal case management. RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans has an add rating and $3.74 price target on its shares. This implies potential upside of 24% for investors over the next 12 months.

The post These small cap ASX shares could rise 20% to 50% appeared first on The Motley Fool Australia.

Three broker buy ratings that you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone right now:

Boss Energy Ltd (ASX: BOE)

According to a note out of Bell Potter, its analysts have retained their buy rating on this uranium producer's shares with a reduced price target of $4.70. The broker highlights that Boss Energy is one of the most shorted shares on the Australian share market. However, it believes that short sellers continuing to hold short positions at this level run the risk of being squeezed. This is because the broker doesn't believe that its production cost update will be as bad as feared and feels that any potential increase is more than priced in now. So, with its shares screening as incredibly cheap against North American peers, Bell Potter suspects that its shares could re-rate significantly if things go to plan. The Boss Energy share price is trading at $2.45 this morning.

Pro Medicus Limited (ASX: PME)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this health imaging technology company's shares with an improved price target of $278.00. According to the note, the broker believes that Pro Medicus is one of Australia's best global growth companies. It feels that further Visage adoption is a matter of when, not if. In light of this, Goldman forecasts a strong increase in the value and cadence of contract wins over time. And while Pro Medicus is not cheap, trading on 114x FY26E EV/EBITDA, the broker believes that this is justified due to its revenue/margin outlook, unique cloud offering, and significant long-term opportunity. The Pro Medicus share price is trading at $251.69 on Friday.

Readytech Holdings Ltd (ASX: RDY)

Analysts at Morgans have initiated coverage on this mission-critical software company's shares with an add rating and $3.74 price target. According to the note, the broker has been pleased with Readytech's performance this year and believes that the strong form can continue for the next few years. So much so, it is forecasting double digit growth each year over the period. Despite this, it notes that its shares are trading a huge discount to historical multiples. Morgans feels this has created a compelling buying opportunity. The Readytech share price is fetching $2.94 at the time of writing.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

That's because Goldman Sachs believes they could be dirt cheap at current levels. Here's what the broker is saying about them:

IDP Education Ltd (ASX: IEL)

This language testing and student placement company's shares are down 33% since the start of the year. This has been driven by concerns over tough operating conditions caused by visa changes in key markets.

While Goldman acknowledges that FY 2025 is going to be a disappointing year for this ASX growth share, it believes it is worth sticking with the company. Especially given its belief that IDP Education's earnings growth will return in FY 2026 and then it will be onwards and upwards from there. It said:

We believe IEL's premium valuation is justified given the medium-term earnings potential driven by: (1) Structural growth in multi-destination placements, supplemented by an ongoing Australian recovery; (2) Ability to grow market share in the highly fragmented Canadian and UK SP markets; (3) Reinvestment in digital capabilities to increase competitive moat and generate new earnings streams.

Goldman has a buy rating and $19.00 price target on IDP Education's shares. Based on its current share price of $12.64, this implies potential upside of 50% for investors over the next 12 months.

Readytech Holdings Ltd (ASX: RDY)

Goldman Sachs also thinks that Readytech could be an ASX growth share to buy following a pullback in its share price this year.

Readytech owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government.

Goldman highlights the company's high (and increasing) levels of recurring revenue and low churn levels as reasons to buy. In addition, the broker points that Readytech's defensive public sector end-markets and mission critical software solutions should protect its earnings in the event of an economic slowdown.

In light of this, it feels that the company's shares deserve to trade on significantly higher multiples. It explains:

Further to its defensiveness, we believe the market has given RDY little credit for improving its organic profile since listing while the company has maintained solid margins and cash flow. In our view, RDY will continue to grow mid-teens organically, underpinned by solid software metrics such as low churn at ~3% and high LTV/CAC.

RDY trades at a large discount to ASX tech peers, both on an absolute and growth-adjusted basis, which we believe is too wide considering RDY's business quality and growth outlook.

Goldman has a buy rating and $4.25 price target on its shares. Based on its current share price of $2.92, this suggests that upside of 45% is possible over the next 12 months.

The post These dirt cheap ASX growth shares could rise 45% to 50% next year appeared first on The Motley Fool Australia.

That's because brokers have rated them as buys and see potential for them to rise strongly from current levels. Here's what you need to know about them and why they could be great buy and hold options:

Nextdc Ltd (ASX: NXT)

Analysts at Morgans think that NextDC could be an ASX growth stock to buy in December. They currently have an add rating and $20.50 price target on its shares.

NextDC is a leading provider of innovative data centre outsourcing solutions, connectivity services, and infrastructure management software. Its data centres have been in great demand for some time due to the shift to the cloud.

And with the artificial intelligence megatrend driving a new wave of demand and the company expanding overseas, NextDC's outlook has arguably never been so bright. It is for this reason that Morgans thinks it could be worth snapping up today. It said:

Enjoying all the benefits of the AI growth opportunity with less volatility are the operators of data centres. Data centres are facilities that store, process, and manage the vast amounts of data foundational to AI, ensuring secure and efficient data flow, backup, and recovery. […] Digital Realty recently reported a record sales quarter during which it sold double the data centre capacity of its previous high and about four times more capacity than it usually sells in a quarter.

This reinforces our view that the significant demand for cloud computing and AI-related digital infrastructure is going to underpin attractive returns and long-term growth. […] Our preferred exposure is NEXTDC. It has 17 operational data centres in Australia and nearly a dozen under construction or about to be built across Australasia and Asia.

Readytech Holdings Ltd (ASX: RDY)

Goldman Sachs thinks that Readytech could be a top ASX growth stock to buy this month. It has a buy rating and a $4.25 price target on its shares.

Readytech owns a portfolio of enterprise software businesses across several market verticals, including higher education and local government.

Goldman rates the company highly due to its growing recurring revenue and low churn levels. The broker also points out that Readytech's strong presence in defensive public sector markets and its mission-critical software solutions should help protect earnings during an economic slowdown.

So, with Readytech's shares trading at a significant discount to its peers, it sees this as a great investment opportunity. The broker explains:

Further to its defensiveness, we believe the market has given RDY little credit for improving its organic profile since listing while the company has maintained solid margins and cash flow. In our view, RDY will continue to grow mid-teens organically, underpinned by solid software metrics such as low churn at ~3% and high LTV/CAC. RDY trades at a large discount to ASX tech peers, both on an absolute and growth-adjusted basis, which we believe is too wide considering RDY's business quality and growth outlook.

The post 2 fantastic ASX growth stocks to buy and hold for 10 years appeared first on The Motley Fool Australia.

Here's what you need to know about these shares from the small side of the market:

AVITA Medical Inc (ASX: AVH)

The first small cap ASX share that could be a buy is AVITA Medical. It is a regenerative medicine company with a focus on wound care management and skin restoration with its RECELL technology.

The company notes that RECELL harnesses the regenerative properties of a patient's own skin to create spray-on skin cells, delivering a transformative solution at the point-of-care. Management believes its technology serves as the catalyst for a new treatment paradigm enabling improved clinical outcomes.

Morgans is very positive on the company. This is partly due to the company recently expanding its "indication into full thickness skin defects and Vitiligo (US$5bn TAM)." It also thinks that its automated device RECELL Go "will be a meaningful driver of rapid adoption by clinicians."

The broker has an add rating and $4.56 price target on its shares.

Bluebet Holdings Ltd (ASX: BBT)

A second small cap ASX share that could be a buy is Bluebet. It is a sports betting company which recently completed a merger with betr.

Morgans is also positive on the company and believes its shares are undervalued at current levels. Particularly given its recent quarterly update, which it notes saw Bluebet report a "strong performance despite not yet fully benefiting from the impact of the betr migration."

In addition, it highlights that its net win margin of 9.7% exceeded the market's and its own expectations. And, "impressively, the margin reflects the company's rapid success in monetising betr's customer base within a short timeframe."

Morgans currently has an add rating and 33 cents price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another small cap ASX share that has been named as a buy is Readytech.

It is a technology company that owns a portfolio of enterprise software businesses across several market verticals. This includes higher education and local government.

Goldman Sachs is a fan of the company. It likes Readytech due to its growing levels of recurring revenue and low churn levels. The broker expects this to help the company "continue to grow mid-teens organically while making accretive acquisitions."

The broker currently has a buy rating and $4.25 price target on its shares.

The post 3 exciting small cap ASX shares to buy in November appeared first on The Motley Fool Australia.

They have recently been named as buys by brokers and tipped to rise strongly. Here's why they could be great buy and hold investment options:

Megaport Ltd (ASX: MP1)

The first ASX tech share to look at is Megaport. It is a leading global provider of elastic interconnection services that Morgans rates highly. The broker currently has an add rating and $12.50 price target on its shares.

Megaport has grown very strongly in recent years thanks largely to its exposure to the ongoing shift to the cloud, which has been accelerating recently due to the artificial intelligence (AI) megatrend.

Morgans believes this strong form can continue and is forecasting strong earnings growth over the coming years. It said:

Megaport is a global cloud connection network and the leading Network as a Service provider. It operates the largest data centre connection business in the world, connecting to 850 data centres through a fully automated, on-demand telco network. We think it is uniquely placed to help business move data globally and benefit from the growth of data related to both cloud computing and AI.

Readytech Holdings Ltd (ASX: RDY)

The team at Goldman Sachs thinks that Readytech could be an ASX tech share to buy this month. It has a buy rating and $4.25 price target on its shares.

Readytech owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government.

The broker rates Readytech highly due to its growing levels of recurring revenue and low churn levels. In addition, it highlights that its defensive public sector end-markets and mission critical software solutions should protect its earnings in the event of an economic slowdown.

So, with its shares trading at a sharp discount to peers, Goldman believes this could be a great time to invest. It explains:

Further to its defensiveness, we believe the market has given RDY little credit for improving its organic profile since listing while the company has maintained solid margins and cash flow. In our view, RDY will continue to grow mid-teens organically, underpinned by solid software metrics such as low churn at ~3% and high LTV/CAC. RDY trades at a large discount to ASX tech peers, both on an absolute and growth-adjusted basis, which we believe is too wide considering RDY's business quality and growth outlook.

The post 2 exciting ASX tech shares to buy and hold for 10 years appeared first on The Motley Fool Australia.

Here's what you need to know about these top stocks:

Light & Wonder Inc. (ASX: LNW)

Bell Potter thinks that this leading global cross platform games company could be an ASX growth share to buy. While it acknowledges that the "loss of future Dragon Train revenues is disappointing", it remains positive on the future. Particularly given "LNW's cross-platform strategy and leading scale producing a portfolio of high-performing games in both land-based and digital markets."

Bell Potter currently has a buy rating and $165.00 price target on the company's shares.

Megaport Ltd (ASX: MP1)

Another ASX growth share to buy could be Megaport. It is a leading global provider of elastic interconnection services. Megaport has been growing at a rapid rate in recent years due to increasing demand for its services thanks to the cloud computing boom. Analysts at Goldman Sachs believe this can continue due to "strong structural tailwinds from the adoption of public cloud including multi-cloud usage and the transition towards NaaS technologies."

Goldman has a buy rating and $12.00 price target on its shares.

NextDC Ltd (ASX: NXT)

Over at Morgans, its analysts think that NextDC could be an ASX growth share to buy. It is one of Asia's most innovative data centre-as-a-service providers. Morgans believes that the company is well-placed for growth in the coming years thanks to the aforementioned cloud computing boom. So much so, it estimates that NextDC's operating earnings could double based on existing agreements.

The broker currently has an add rating and $20.50 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

A fourth ASX growth share that has been named as a buy is Readytech. It owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government. Goldman Sachs is also a fan of the company. It likes Readytech due to its growing recurring revenue and low churn levels. The broker expects this to help the company "continue to grow mid-teens organically while making accretive acquisitions."

Goldman currently has a buy rating and $4.25 price target on its shares.

Xero Limited (ASX: XRO)

A final ASX growth share that could be a buy is Xero. It is a cloud accounting platform provider with over 4 million subscribers. Goldman highlights that as large as Xero's subscriber base may look on paper, it is just a fraction of its estimated total addressable market of 100 million small to medium sized businesses. As a result, the broker feels that Xero has a significant growth runway and feels it is "very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds."

Goldman has a conviction buy rating and $201.00 price target on Xero's shares.

The post 5 fantastic ASX growth shares to buy in October appeared first on The Motley Fool Australia.