Do you have a high tolerance for risk? If you do, then it could be worth considering an investment in the small-cap ASX share in this article.
That’s because Morgans believes the exciting company could be a small-cap ASX share to buy now.
Which small-cap ASX share?
The small cap that Morgans is bullish on is 6K Additive Inc (ASX: 6KA).
It describes itself as a US-based manufacturer and trusted supplier of premium metal powders for additive manufacturing and alloy additions for the aluminium melt industry. Importantly, it notes that all its products are made from sustainable sources.
The company highlights that its manufacturing process produces the highest quality metal powders that are truly spherical, void of porosity and satellites with better unit economics than competing technologies.
What is the broker saying?
Morgans is positive on the company’s outlook, highlighting that it has a growing customer base filled with some very large names. It said:
6K Additive (6KA) is a US-based advanced materials company that upcycles metal waste into engineered feedstock, producing high-value powders and alloys for aerospace, defence, medical, energy, and industrial applications. The company delivered 4Q25 revenue of US$5.6m (representing a run-rate of ~US$22.4m pa) with over 100 active customers including ABB, Boeing and Ford.
6KA has a potential sales pipeline of ~US$250m pa and plans to use proceeds from its recent IPO (Dec-25) to consolidate and scale its operations in the US. This will result in a 5x increase in powder production capacity (from 200mt to 1,000mt) and deliver significant margin improvement and production efficiency.
In light of this, the broker has initiated coverage on the small-cap ASX share with a speculative buy rating and $1.30 price target.
Based on its current share price of 88 cents, this implies potential upside of almost 50% for investors over the next 12 months.
Commenting on its speculative buy recommendation, the broker said:
We initiate coverage on 6KA with a SPECULATIVE BUY rating and a target price of $1.30. Backed by proven technology, a closed-loop model, and broad customer validation, we believe the company is well-positioned to benefit from strong demand in metal additive manufacturing and US government initiatives to reshore the sourcing and processing of critical minerals.
Trading on 3.7x FY27F (Jun Y/E equivalent) EV/Revenue versus a domestic peer median of 9.5x, we view 6KA’s valuation as relatively attractive – though suited to more assertive investors.
The post Morgans says this exciting small-cap ASX share could rise almost 50% appeared first on The Motley Fool Australia.
Should you invest $1,000 in The Boeing Company right now?
Before you buy The Boeing Company shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and The Boeing Company wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- These ASX blue chips now look too cheap to ignore
- Brokers name 3 ASX shares to buy right now
- Why this ASX mining stock could be a strong buy after major milestone
- Broker sees 26% upside in ASX healthcare share behind Chemist Warehouse
- Why Beetaloo, Fortescue, Orora, and Whitehaven Coal shares are dropping today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Boeing. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.