If you have a high risk tolerance, then it could be worth adding some ASX shares to your portfolio. But which small caps could offer a compelling risk/reward? Listed below are two small caps that analysts are very bullish on right now. Here's what they are saying about them: ( ) The first small cap ASX share that could be a buy according to analysts is AVITA Medical.
It is a regenerative medicine company with a focus on wound care management and skin restoration with its RECELL technology. Morgans is positive on the company and sees significant value in its shares at current levels. It commented: AVH is a regenerative medicine company focusing on the acute wound care market.
It has recently expanded its indication into full thickness skin defects and Vitiligo (US$5bn TAM). The expanded indication in full thickness skin defects has the required reimbursement in place and sales have started. AVH has provided revenue guidance for FY24 of growth of ~64% and importantly has guided to achieving profitability by 3QCY25.
At the same time, the company is seeking approval by the FDA for its automated device RECELL Go, which if successful will launch 1 June 2024, and will be a meaningful driver of rapid adoption by clinicians. The broker has an add rating and $6.40 price target on its shares.
Based on the current AVITA Healthcare share price of $2.50, this suggests that the company's shares could more than double in value over the next 12 months. ( ) Another small cap ASX share that cou.