Bell Potter names the best ASX shares to buy in May

If you are looking for new investment ideas this month, then it could pay to listen to what Bell Potter is saying.

That’s because the broker has just released its latest top Australian picks from the small-cap side of the market. These are its panel of favoured ASX shares that it believes offer attractive returns over the long term.

Two that make the list in May are named below. Here’s why it is bullish on them:

Aeris Resources Ltd (ASX: AIS)

Bell Potter has added this copper miner to its list this month. The broker highlights its substantial cash balance and strong production growth outlook as reasons to buy.

Commenting on the new addition, it said:

We add Aeris Resources (AIS) to the Small Cap Panel as a high-conviction copper-led growth and re-rating story. AIS is a copper-dominant producer whose near-term outlook is highly leveraged to copper prices and increasing production at its 100%-owned Tritton operation in central west NSW.

The market capitalisation is ~30% backed by net cash ($149.8m at the end of the March quarter, no drawn bank debt), with the last gold hedges to roll off this quarter, leaving the company completely unhedged from start of FY27. AIS’ March quarter delivered a $43m lift in cash with operating cash flow of $76m, and management is guiding to the low end of FY26 production guidance, implying a material step-up in copper output through the June quarter as production ramps.

Bell Potter also highlights that Aeris is now in a catalyst-rich window for this ASX share. It adds:

The setup into CY26 is the cleanest catalyst-rich window this stock has had. The first full quarter of open-pit production at Tritton should drive a step-change in operating cash flow, while early works at the higher-grade Constellation open-pit are set to commence this quarter, with first ore by end of CY26 a major positive catalyst for the copper production growth profile.

Praemium Ltd (ASX: PPS)

Another ASX share that is on the list in May is investment platform provider Praemium.

The broker is a big fan of the company and believes it is being significantly undervalued by the market compared to its larger rivals. Another positive is that Bell Potter estimates that its shares offer a 4.5% dividend yield at current levels.

As a result, the broker believes this has created a buying opportunity for investors. It said:

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~14x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

The post Bell Potter names the best ASX shares to buy in May appeared first on The Motley Fool Australia.

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• Missed out on Hub24 and Netwealth? Bell Potter thinks this ASX tech stock is next

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 Praemium. 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.