As the ASX opens to a fresh week of trading, broker Bell Potter has provided updated guidance on two ASX small-cap shares.Â
While ASX small-cap shares come with increased risk and volatility, many investors may still choose to monitor smaller companies with greater potential upside.
Here is what Bell Potter is predicting for these two.
Civmec Ltd (ASX: CVL)
Civmec is an Australian, multidisciplinary heavy engineering and construction company, providing integrated services to the energy, resources, infrastructure, marine and defence sectors.
Like many small-cap shares, it has experienced significant volatility in 2026, however finished last Friday 12% higher than at the start of the year.Â
The company released quarterly results last week, which prompted updated guidance from Bell Potter.
The broker noted that revenue of $244.2m was up 54.1% and reflected an ongoing uplift in activity across the company’s core operating segments.
EBITDA of $27.8m grew 44.4% YoY with the margin falling to 11.4% from 12.1% in the pcp. NPAT of $13.5m grew 45.2% YoY.
Comparing the result to our old full year estimates implies CVL needs revenue of $232.3m in 4Q26, very achievable given the company’s elevated and diverse order book of $1.3b. EBITDA margins came in ahead of our expectations which sees us upgrade our full year EBITDA margin slightly.
Following the results, Bell Potter retained its buy recommendation on this ASX small-cap along with a price target of $1.90.
This indicates an upside potential of just over 15%.
With a diverse $1.35b order book underpinned by increased Resources activity and defence orders, CVL is well positioned for growth.
Avita Medical Ltd (ASX: AVH)
Avita Medical is a healthcare company specialising in regenerative medicine. It is best known for its RECELL system, a burn treatment device that creates ‘spray-on skin’ from a patient’s own skin cells within 30 minutes, avoiding or reducing the need for skin grafts.
Its share price is up just over 7% year to date.
The company also released quarterly results last week.
According to Bell Potter, the company reported solid 1Q26 results, with revenue rising 4% year-on-year to US$19.3m, close to its previous record quarter of US$19.4m.
Losses improved significantly, with EBIT loss narrowing to US$8.8m from US$15.6m a year earlier.
Bell Potter expects 2Q26 revenue could set a new company record. Management said January was slower, but February and March were very strong, and momentum continued into April.
Despite this, the broker sees this ASX small-cap as close to fully valued.
Bell Potter currently has a speculative hold recommendation and $1.20 price target, indicating just 2% upside.
The post Are these ASX small-cap shares a buy, hold or sell according to Bell Potter? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Bell 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 Avita Medical. The Motley Fool Australia has recommended Avita Medical. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.