Broker Picks: Small-Cap ASX Shares with Promising Returns in 2024

As we approach the new year, investors eyeing growth opportunities may find promise in the small-cap sector. Bell Potter, a reputable brokerage firm, has identified two small-cap ASX shares with the potential for significant returns in 2024. Let's delve into the insights provided by Bell Potter and explore the growth narratives of these ASX small-cap gems.


Image Credit: Pexels

1. Aeris Resources Ltd (ASX: AIS): A Copper Miner with Renewed Potential

Bell Potter emphasizes the value proposition presented by Aeris Resources, a copper miner that faced challenges in the previous year but has undergone a transformative capital raising. The Tritton Copper Operations in NSW, Cracow Gold Mine in QLD, and Mt Colin Copper Mine in QLD constitute AIS's primary assets. The Tritton copper mine's near-term outlook is particularly compelling, with rising copper grades driving production growth in FY24. Exploration success at Constellation further enhances long-term production prospects. Bell Potter's buy rating and 23 cents price target suggest a remarkable 76% potential upside over the next 12 months, indicating confidence in AIS's ability to deliver on production targets.


2. Environmental Group Ltd (ASX: EGL): Nurturing Sustainable Growth

Environmental Group Ltd, an environmental engineering company committed to ecological protection, stands as another small-cap ASX share endorsed by Bell Potter for the upcoming year. EGL operates across five core segments, all profitable and experiencing over 15% annual growth. The company focuses on initiatives such as landfill diversion, PFAS water treatment, and battery minerals development, aligning with favorable environmental trends. Bell Potter envisions strong growth for EGL in FY 2024 and beyond, citing the potential for more than 30% EBITDA growth. The Baltec business, in particular, is highlighted as being in a robust upgrade cycle. With a buy rating and a 34 cents price target, Bell Potter indicates a 31% potential upside over the next 12 months, emphasizing EGL's position for growth and the anticipated positive impact of industry validation.

Conclusion: Navigating Growth Opportunities in Small Caps

Bell Potter's endorsement of Aeris Resources and Environmental Group Ltd underscores the potential hidden in the small-cap segment. Investors considering portfolio diversification and growth in 2024 may find these picks intriguing. However, it's essential to conduct thorough research, assess risk tolerance, and stay informed about market dynamics. Small caps, while offering growth potential, often come with increased volatility, requiring a strategic and informed approach from investors.
Location: Australia

Comments

Post a Comment

Popular posts from this blog

3 Monthly Dividend Stocks for a Stable Passive Income

Image
Inflation in Canada has risen, with Statistics Canada reporting an annual rate of 2.9% in May, up from 2.7% in April. This uptick has been driven by increased prices for essential items like fresh produce, meat, and shelter, impacting households nationwide. To mitigate these rising costs, investors are increasingly seeking out high-yielding, monthly-paying dividend stocks for reliable passive income. Here’s a look at three top monthly-paying dividend stocks that offer stability and income potential, aligned with the upcoming dividend calendar . SmartCentres Real Estate Investment Trust (TSX:SRU.UN) SmartCentres REIT is a well-established player in the Canadian real estate market, owning and managing a diversified portfolio of 193 properties spanning 35.1 million square feet. The REIT benefits from strategic property locations, high occupancy rates, and a strong tenant base, contributing to stable rental income. Additionally, SmartCentres has a robust pipeline of development projects, ...
Read more

Unveiling TSX Basic Material Stocks But Do Focus on TSX:NTR

Image
The Toronto Stock Exchange (TSX) hosts a diverse array of sectors, and the basic materials sector stands as a cornerstone of the Canadian economy. Within this dynamic landscape, TSX NTR takes center stage. In this article, we'll delve into the TSX basic materials sector stock , offering insights for investors and shedding light on the role of TSX: NTR in this vital market. Image Credit: Freepik TSX Basic Materials Sector Overview The TSX basic materials sector comprises companies engaged in the extraction, processing, and production of raw materials, including metals, minerals, and forestry products. As a crucial component of Canada's resource-rich economy, the basic materials sector on the TSX reflects global demand, commodity prices, and industry-specific dynamics. Investors exploring opportunities within the TSX basic materials sector stock often navigate through factors such as commodity prices, geopolitical events, and technological advancements. Understanding the nuances ...
Read more

Increase Monthly Income: 21,622 ASX Shares = $200 Extra!

Image
Investing for passive income is a smart financial move, and the ASX dividend yield stock , Accent Group Ltd (ASX: AX1), has a proven track record of delivering consistent dividends to its shareholders. In this article, we will explore how Accent Group could be the key to unlocking a steady stream of passive income, potentially amounting to $2,400 per year or $200 per month. Image Credit: Pexels Diversification in Portfolio Diversifying your investment portfolio is crucial for long-term financial success. Relying on a single business for all your income is risky. Here, we will delve into why Accent Group is a compelling option for income investors, highlighting its unique features that set it apart in the market. Understanding Accent Group Originally a wholesale distributor, Accent Group has evolved into a major player in the footwear industry. Representing renowned brands such as CAT, Dr Martens, Skechers, and more, the company operates over 800 stores globally and boasts a robust e-co...
Read more