ASX small-cap shares are slightly outperforming in 2025, with the S&P/ASX Small Ordinaries Index (ASX: XSO) up 3.88% while the S&P/ASX 200 Index (ASX: XJO) is up 3.71% in the year-to-date.
Many analysts have suggested this should be a good year for ASX small-cap shares because they tend to do well when interest rates are on the way down, as they are all over the world.
Let's check out some buy recommendations from a few brokers published on asx.com.au.
Analysts rate these 4 ASX small-cap shares a 'buy'
Bannerman Energy Ltd (ASX: BMN)
The Bannerman Energy share price is currently $3, down 0.66%.
Canaccord Genuity has a speculative buy rating on this ASX small-cap uranium share. Its 12-month price target is $4.33.
Canaccord is positive on Bannerman due to the on-time and on-budget construction progress at its Etango-8 uranium project. There is also an anticipated 3.5% annual growth in uranium demand through to 2035 amid more small modular reactors being built worldwide.
The broker says:
With a cash balance of $81.1mn the company can easily fund these early works ($95.7mn at end of SepQ). Sourcing a strategic partner remains the largest hurdle. BMN is still evaluating and progressing various funding sources, including project/corporate debt as well as potential offtake and joint venture opportunities with strategic counterparties who can add value to the Etango Project.
Opthea Limited (ASX: OPT)
The Opthea share price is $1.09, down 0.46% at the time of writing.
Canaccord Genuity has a buy rating on this ASX small-cap healthcare share with a 12-month price target of $1.25.
The broker is looking forward to a data update for the Phase III Coast study of OPT-302, which it expects the eye diseases biotech to release in April.
The broker says:
OPT-302 is unique and differentiated, in our view, on safety and efficacy metrics, and we see the upside opportunity for peak sales of US$1b and upside to >$3/share, pending clinical, regulatory and commercial success.
PYC Therapeutics Ltd (ASX: PYC)
The PYC Therapeutics share price is $1.27, down 2.31% at the time of writing.
Canaccord Genuity has a buy rating on this ASX small-cap biotech share with a 12-month price target of $2.40.
The broker notes that a US competitor recently announced positive Phase 1b study data for another gene therapy targeting autosomal dominant polycystic kidney disease (ADPKD).
The broker says:
While the asset is a competitive threat to PYC's, we note the ADPKD market is very large and there is room for multiple players.
We also think that PYC may have a differentiated mechanism because it directly targets the gene responsible for cyst formation in the kidney …
Nuix Ltd (ASX: NXL)
The Nuix share price is $4.74, down 0.63%.
Moelis Australia has a buy rating on this ASX small-cap tech share with a price target of $6.09.
Moelis responded to Nuix's 1H FY25 update, which stated it was expecting 8% to 9% growth in Annualised Contract Value (ACV) compared to the previous corresponding period, down from an earlier 15% target for FY25. Nuix also noted that increased expenses will lower its earnings before interest, tax, depreciation, and amortisation (EBITDA) and cash flow for 1H25.
Moelis said:
… NXL is trading at a meaningful discount to our $6.09 target price and therefore we change our rating to Buy, however we highlight the need for further detail at the forthcoming 1H25 result to enhance our confidence.
The post Experts reveal 4 ASX small-cap shares to buy now appeared first on The Motley Fool Australia.
Motley Fool contributor Bronwyn Allen 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 Nuix. 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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