The allure of small-cap shares on the Australian Securities Exchange (ASX) is undeniable. For investors with a higher risk appetite, these smaller companies can offer the potential for significant returns, making them an attractive addition to a diversified portfolio. But with so many options, identifying the next big thing can be a challenge.
Leading broking firm Morgans has recently highlighted three small-cap ASX stocks that they believe are poised for substantial growth, each carrying a “buy” rating and price targets that suggest considerable upside from their current trading levels. Let’s take a closer look at these promising opportunities.
Airtasker Ltd (ASX: ART): Connecting Talent with Tasks
Airtasker, a digital platform facilitating the connection between individuals seeking help with tasks and those willing to perform them, has been identified by Morgans as a potential buy. The broker has set a price target of 51 cents for its shares, a figure more than double its current trading price of 23 cents.
Morgans noted a resilient performance in the first half of the 2026 financial year for Airtasker, with group revenue climbing by approximately 13.5% to around $29 million. Established marketplaces within the company demonstrated solid EBITDA growth, up by approximately 11% to $15 million. Domestic metrics appear strong, with an uplift in booked tasks and brand recognition. Furthermore, Morgans is encouraged by the momentum in Airtasker’s international expansion, particularly in the UK and US markets, which saw revenue surges of 85% and 380% respectively compared to the previous corresponding period.
While minor adjustments have been made to topline forecasts, the inclusion of an additional $5 million in cash marketing costs for the second half of the financial year, along with the recent capital raise, has been factored into their analysis. Despite these considerations, Morgans maintains its “buy” recommendation, underscoring their confidence in the company’s future prospects.
Meeka Metals Ltd (ASX: MEK): Striking Gold with Production Growth
Gold mining company Meeka Metals is another small-cap ASX share that has captured the attention of Morgans. The broker is particularly impressed with the management’s strategic plans for production growth, anticipating a significant “step-change in output” by the fourth quarter.
Based on this positive outlook, Morgans has issued a “buy” rating for Meeka Metals, with a price target of 39 cents. This target also represents more than double the current share price of 17 cents.
The company recently announced an expansion of its operations to 800 kilotonnes per annum (ktpa) on an equivalent ounce basis, driven by the implementation of ore sorting technology. This initiative requires a modest capital expenditure of $6 million, with commissioning scheduled for the first quarter of FY27. The ore sorting process is expected to effectively nearly double the head grade of ore from the Andy Well underground mine, leading to an average increase in annual production forecasts of 7% from FY27 onwards.
While open-pit throughput has lagged behind initial forecasts due to variations in ore moisture content, this issue is expected to be resolved with the commencement of underground stoping in the fourth quarter of FY26. Morgans has revised its FY26 production forecast to 37.6 koz of gold (down from 40.2 koz), acknowledging that this figure is below the original DFS guidance. Nevertheless, they maintain their “buy” rating and a price target of $0.39 per share, recognising that near-term production softness might impact the third-quarter results before the anticipated surge in output in the fourth quarter.
Readytech Holdings Ltd (ASX: RDY): Software Solutions for Growth
Rounding out the list is Readytech Holdings, an enterprise software provider that Morgans holds in high regard. Despite a recent downgrade in earnings estimates to align with the company’s revised guidance, the broker remains optimistic about Readytech’s potential. This positive sentiment stems from a robust sales pipeline and the prospect of near-term catalysts.
Morgans has assigned a “speculative buy” rating to Readytech’s shares, with a price target of $2.20. This implies a potential upside of approximately 85% for investors over the next 12 months.
The company’s first-half FY26 results and revised outlook were somewhat softer than anticipated, with Underlying EBITDA of $17.5 million and Cash EBITDA of $7.5 million falling about 6% short of Morgans’ forecasts. While Readytech’s enterprise strategy remains on track, the company indicated that an increase in churn during the first half of FY26, coupled with more protracted implementation and sales conversion cycles, has led to a downgrade in FY26 guidance and the withdrawal of its longer-term targets.
Consequently, Morgans has revised its FY26-27 EBITDA forecasts downwards by 10-20% to reflect the updated guidance. However, given Readytech’s strong pipeline and potential catalysts, such as a decision regarding the VIC TAFE tender and increased corporate appeal, they have moved to a “speculative buy” rating. Their revised price target stands at $2.20 per share, down from a previous target of $3.00 per share.
These three small-cap ASX opportunities represent compelling prospects for investors seeking to tap into the growth potential of emerging companies. As always, thorough research and consideration of individual risk tolerance are crucial before making any investment decisions.
