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If you're wanting a little exposure to the small side of the market this month, then it could be worth checking out the two small-cap ASX shares that Bell Potter rates as a buy.
Here's what the broker is saying about them:
DroneShield Ltd (ASX: DRO)
It believes the company is well-positioned in a market that is expected to grow to be worth ~A$11.5 billion over the next 10 years. It explains:
DRO products are designed to detect and defeat small drones, such as those recently deployed in Ukraine. The company is leveraged to the current trend of global rearmament and the addressable market for counter-drone technology is expected to exceed $7.62 billion USD over the next decade.
CY23 has been a transformative year for DroneShield, with BPe forecasting the company to record $69.9 million in revenue for the year, approximately 4x the CY22 result ($16.9 million), and achieve profitability for the first time (BPe NPAT $15.2 million). The company currently has a sales pipeline of ~$400 million, with key near term sales opportunities including the roll out of counter-drone technology across US military bases, a $30 million plus framework agreement with a European Government and an Air Services Australia tender to install C-UAS technology across 29 airports.
GenusPlus Group Ltd (ASX: GNP)
Bell Potter notes that the company is positioned to benefit from the rise of renewable power. It explains:
GenusPlus (GNP) is leveraged to increasing investment in renewable power, battery energy storage and transmission infrastructure on the east coast of Australia; these investments are considered essential for achieving ambitious decarbonisation targets set by state and federal Governments. We expect awarding of a design and construct contract for the HumeLink East project will formalise this multi-decade trend in transmission infrastructure investment while solidifying the company as a tier 1 provider of contracting services for large scale energy infrastructure.
The post Buy these small cap ASX shares in December: Bell Potter appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and GenusPlus Group. The Motley Fool Australia has recommended DroneShield. 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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