Stock Pick

2 ASX small-caps with 40% upside

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A man surrounded by huge piles of paper looks through a magnifying glass at his computer screen.

ASX small caps can offer strong growth prospects to an investor’s portfolio. 

With global headwinds impacting the ASX 200 this year, it could be an ideal time to allocate capital towards high upside stocks. 

The team at Bell Potter have identified two in particular that fit this criteria. 

Let’s see what the broker is projecting. 

Orthocell Ltd (ASX: OCC)

Orthocell is an Australian-based, commercial-stage regenerative medicine company developing and commercialising collagen-based medical devices and autologous cell therapies for the repair and regeneration of bone and soft tissue.

The company leverages their proprietary collagen processing and manufacturing platform to produce implantable biomaterials designed to support tissue regeneration and functional recovery.

As is commonplace with small-cap shares, it has experienced some volatility in 2026. 

However, Bell Potter has a speculative buy rating on this ASX small-cap, suggesting it could rise by 40% in the next year. 

In a note released yesterday, Bell Potter said June-quarter revenue increased 19% QoQ to a record $3.8m (+36% pcp), reflecting continued strength across the established market.

The broker said the US rollout of Remplir is making good progress. 

The product is now available to around half of the US population through expanded distributor coverage. 

Hospital access is also growing, with approvals in 151 hospitals and more applications still under review. 

In simple terms, more hospitals are buying the company’s nerve repair product Remplir, and more surgeons have started using it. 

However, sales growth has trailed hospital access growth, suggesting many surgeons are still trialling the product and are yet to commit.

Based on this guidance, Bell Potter has a 12-month price target of $1.19 on this ASX small-cap, indicating a 40% upside from current levels. 

Sky Metals Ltd (ASX: SKY)

Another ASX small-cap drawing a speculative buy rating is Sky Metals. 

Sky Metals engages in the acquisition, exploration, and development of mineral resources.

Its share price has rocketed 183% higher year to date, and Bell Potter believes the growth can continue. 

Bell Potter noted that Sky Metals has significantly increased the estimated size of its Tallebung project in New South Wales. 

The updated resource now contains much more tin and tungsten than previously estimated. The company has also identified its first silver resource. 

Much of the resource is now classified with higher confidence, making it more likely to be converted into mineable reserves.

Based on this guidance, the broker has placed a 12-month price target of $0.350 on this ASX small-cap, indicating 37% upside from current levels. 

The post 2 ASX small-caps with 40% upside 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Orthocell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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