Bell Potter has released some new research reports this week, with two in particular piquing my interest.
The broker predicts that the companies in question could appreciate substantially in value over the next 12 months.
Let's see who they like.
This company's shares have dropped 30% over the past 12 months, but the Bell Potter team seem to think a turnaround is on the cards.
Some recent news from the company was an announcement that it had executed a final loan agreement with the Export-Import Bank of the United States for a US$27.4 million secured financing facility.
The company said the loan would be used to support the ongoing expansion of its US manufacturing capacity "for critical materials used across aerospace, defense, space, energy and advanced manufacturing applications''.
6K Additive Chief Executive Officer Frank Roberts said:
Finalising this agreement with EXIM marks an important milestone for 6K Additive and reinforces the strategic importance of expanding domestic production of the critical materials essential to America's defense and advanced manufacturing industries. This investment directly supports the Make More in America Initiative and provides 6K Additive with the funding required to execute our planned capacity expansion while preserving our existing capital to support continued growth.
Bell Potter said even prior to this announcement, the company expected to be funded to profitability.
The broker said 6K Additive had a technological competitive advantage.
They said further:
The company's UniMelt systems are energy efficient, high yield and accept recycled metal feedstock. We expect Additive Manufacturing to be a beneficiary of the US Department of War's Acquisition Transformation Strategy to support rebuilding the country's Defense Industrial Base. Expanded capacity should support a step-change in revenues and earnings from 2027.
Bell Potter has a speculative buy recommendation on 6K Additive shares, with a price target of $1.50, compared with 70 cents currently.
If achieved, this would be a 114% increase.
Bell Potter said Artrya had recently secured its fourth customer for its Salix platform, which improves the detection and management of coronary artery disease.
The broker noted that the new customer was the largest of the four customers to date, with expected scan volumes roughly equal to the other three customers combined.
Bell Potter added:
The agreement has a five-year term with a base US$0.5m contracted fee covering the five-year term (US$100k pa), plus per scan fees for Coronary Plaque and Coronary Flow (once FDA approved).
Bell Potter has a buy recommendation on Artrya shares and a price target of $6, compared with the current price of $3.08.
If achieved, this would represent a 94.8% return. Artrya is valued at $531.1 million.
The post 2 ASX stocks Bell Potter says could rise 95% and 114% appeared first on The Motley Fool Australia.
Motley Fool contributor Cameron England 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 no position in any of the stocks mentioned. 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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