In this article, we will look at the 13 Small Cap Stocks Analysts Are Bullish On.
On June 23, Jason Thomas, Carlyle’s head of global research and investment strategy, appeared on CNBC’s ‘Squawk Box’ to talk about the state of the market and economy in light of the recent financial and geopolitical trends. He said that there is a lot to navigate right now, including geopolitical conflict, tariffs, taxes, and more. It is important to consider how all these uncertainties interact. It is, therefore, not surprising to him that there is not much conviction to sell in the market.
READ ALSO: 13 Best Long-Term Penny Stocks to Buy According to Analysts and 13 Crypto Stocks with the Highest Upside Potential.
Thomas opined that in the event things deteriorate in the geopolitical sense, there is an expectation that tariffs and other issues will ease. He further said that the biggest concern for him is not the stock market, but rather that bonds no longer hedge stock market risk. They had previously done so for a long time, but that was a time when the Fed or central banks did not have to worry about inflation, which is not the case now.
With these trends in view, let’s look at the 13 small cap stocks analysts are bullish on.
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Our Methodology
We used the Finviz stock screener to compile a list of small cap stocks that analysts were bullish on and chose the top 13 with the highest upside potential. We also added the number of hedge fund holders for each stock as of Q1 2025, sourcing the hedge fund data from Insider Monkey’s database. The list is arranged in ascending order of analyst upside.
Note: All data was sourced on June 20.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Small Cap Stocks Analysts Are Bullish On
13. Diebold Nixdorf Inc (NYSE:DBD)
Market Cap: $1.93 billion
Analyst Upside: 48.71%
Number of Hedge Fund Holders: 17
Diebold Nixdorf Inc (NYSE:DBD) is one of the 13 Small Cap Stocks Analysts Are Bullish On. On May 8, D.A. Davidson analyst Matt Summerville reiterated a Buy rating on Diebold Nixdorf Inc (NYSE:DBD) and set a price target of $80.00. The rating update came after the company announced its fiscal Q1 2025 results on May 7, reporting strong financial performance in line with expectations.
Diebold Nixdorf Inc (NYSE:DBD) reported a 36% year-over-year growth in order entry, with product backlog rising to ~$900 million. Its revenue for the quarter came up to $841.1 million, in line with expectations. Management expects these positive factors to support a strong second half of fiscal year 2025 for the company.
Diebold Nixdorf Inc (NYSE:DBD) also maintained its previous financial outlook for 2025 due to a solid start to the fiscal year, and this includes the estimated impact of the US tariff policy on the company’s operations.
Diebold Nixdorf Inc (NYSE:DBD) provides integrated software-led services, security systems, and self-service delivery to retail, financial, government, and commercial markets. Its financial self-services include value-added services, self-service support and maintenance, self-service products, self-service software, and security solutions, including electronic and physical security.
12. Solaris Energy Infrastructure, Inc. (NYSE:SEI)
Market Cap: $1.95 billion
Analyst Upside: 49.31%
Number of Hedge Fund Holders: 31
Solaris Energy Infrastructure, Inc. (NYSE:SEI) is one of the 13 Small Cap Stocks Analysts Are Bullish On. On June 12, Raymond James initiated coverage of Solaris Energy Infrastructure, Inc. (NYSE:SEI) with an Outperform rating and a $39 price target. The firm stated that Solaris Energy Infrastructure, Inc. (NYSE:SEI) is one of the more misunderstood stocks in the space and that the company’s market opportunity has expanded. This holds especially true as the first mover of the arena.
The firm sees long-term value in the company, supported by its notable speed to market, unique combination of competitive pricing, and bespoke build-outs. It also told investors in a research note that Solaris Energy Infrastructure, Inc. (NYSE:SEI) has the ability to layer on “additional service offerings” around the power concept in time.
Raymond James anticipates Solaris Energy Infrastructure, Inc. (NYSE:SEI) to execute booking out the last 20% to 25% of its fleet, positioning the company to reshape the capital structure and rise as a rated credit.
Solaris Energy Infrastructure, Inc. (NYSE:SEI) manufactures patented mobile proppant management systems that store, unload, and deliver proppant to natural gas and oil well sites. The company’s products include Inventory Management Software and Mobile Proppant and Mobile Chemical Management Systems.
11. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)
Market Cap: $1.83 billion
Analyst Upside: 53.65%
Number of Hedge Fund Holders: 27
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is one of the 13 Small Cap Stocks Analysts Are Bullish On. Needham analyst Ami Fadia maintained a Buy rating on Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) on June 6 and set a price target of $49.00. The analyst based the rating on the company’s promising developments and data, citing the preclinical data for BP1.15205.
Presented at the SLEEP 2025 conference, the data highlights significant clinical activity in an orexin/ataxin-3 mouse model, with no noted safety concerns and a wide therapeutic index. This is a positive factor for the drug’s efficacy, as it points towards the potential for nearly complete wakefulness at low doses.
The analyst further supported the optimistic rating for Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) with comparative data from other compounds, such as ORX750 and TAK-861, which demonstrated promising results with considerable wakefulness and a reduction in cataplexy episodes. All these factors contribute to a bullish outlook for the company’s pipeline for addressing unmet needs in sleep disorders.
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a commercial-stage pharmaceutical company that develops and commercializes therapies to treat neurological disorders. Its product, WAKIX, is a molecule that increases histamine signaling in the brain by binding to H3 receptors. The company has one of the strongest pipelines for people with rare neurological diseases.
10. Intuitive Machines, Inc. (NASDAQ:LUNR)
Market Cap: $1.82 billion
Analyst Upside: 57.17%
Number of Hedge Fund Holders: 21
Intuitive Machines, Inc. (NASDAQ:LUNR) is one of the 13 Small Cap Stocks Analysts Are Bullish On. On May 22, Barclays initiated coverage of Intuitive Machines, Inc. (NASDAQ:LUNR) with an Equal Weight rating and a $13 price target. The firm reasoned that it anticipates the company to benefit from NASA’s growing reliance on commercial companies.
The rating highlights an optimistic view of Intuitive Machines, Inc.’s (NASDAQ:LUNR) various opportunities. However, the analyst told investors in a research note that these opportunities are balanced by execution risk, budget uncertainty, a “crowded” competitive landscape, and a valuation with shares trading approximately in line with peers.
Intuitive Machines, Inc. (NASDAQ:LUNR) is a space exploration, services, and infrastructure company that contributes to the development of cislunar infrastructure and engages in establishing cislunar and deep space commerce. It is headquartered in Houston, Texas.
9. DigitalBridge Group, Inc. (NYSE:DBRG)
Market Cap: $1.88 billion
Analyst Upside: 65.33%
Number of Hedge Fund Holders: 38
DigitalBridge Group, Inc. (NYSE:DBRG) is one of the 13 Small Cap Stocks Analysts Are Bullish On. On June 3, Truist raised the firm’s price target on DigitalBridge Group, Inc. (NYSE:DBRG) to $15 from $13, keeping a Buy rating on the shares. The rating update came as a part of a broader research note on REITs.
The firm told investors in the research note that it is updating its model, primarily due to fiscal Q1 results, expense assumptions, and adjusted revenue growth.
DigitalBridge Group, Inc. (NYSE:DBRG) released fiscal Q1 2025 results consistent with its 2025 objectives, with total revenues of $45 million. It reported free revenue of $90 million, up 24% year-over-year, supported by fundraising for DBP Flagship. Fee-Related Earnings (FRE) for fiscal Q1 2025 reached $35 million, reflecting a 79% year-over-year growth.
The company also experienced strategic growth across its portfolio through the $4.5 billion acquisition of Crown Castle Fiber business by DigitalBridge Group, Inc. (NYSE:DBRG) portfolio company Zayo. The acquisition is expected to support Zayo in serving the rising AI-led connectivity demand, particularly in key metro markets.
DigitalBridge Group, Inc. (NYSE:DBRG) is a global alternative asset manager that invests in digital infrastructure. The company focuses on business operations across the digital ecosystem, including data centers, cell towers, small cells, fiber, and edge infrastructure. Its operations are divided into the following segments: Investment Management, Operating, and Corporate and Other.
8. Disc Medicine, Inc. (NASDAQ:IRON)
Market Cap: $1.79 billion
Analyst Upside: 74.38%
Number of Hedge Fund Holders: 34
Disc Medicine, Inc. (NASDAQ:IRON) is one of the 13 Small Cap Stocks Analysts Are Bullish On. In a report released on June 16, Thomas Smith from Leerink Partners maintained a Buy rating on Disc Medicine, Inc. (NASDAQ:IRON) with a price target of $85.00. The analyst based the rating on the company’s positive developments in its hematology-focused pipeline.
Smith stated that Disc Medicine, Inc. (NASDAQ:IRON) is set to submit a New Drug Application for bitopertin, an oral GlyT1 inhibitor, that is anticipated to leverage an accelerated approval pathway. The HELIOS long-term extension study reported positive initial data supporting this progress, as it suggested improvements in live function, sustained reductions in PPIX, and a clean safety profile.
Disc Medicine, Inc. (NASDAQ:IRON) is also participating in ongoing trials, such as the Phase 2 RALLY-MF trial and the Phase 1b MF anemia trial, which have shown positive results with improved biomarker responses. The analyst considers this another positive factor supporting the buy rating.
Disc Medicine, Inc. (NASDAQ:IRON) is a clinical-stage biopharmaceutical company that discovers, develops, and commercializes treatments for hematologic diseases.
7. LendingTree, Inc. (NASDAQ:TREE)
Market Cap: $471.97 million
Analyst Upside: 74.94%
Number of Hedge Fund Holders: 22
LendingTree, Inc. (NASDAQ:TREE) is one of the 13 Small Cap Stocks Analysts Are Bullish On. In a report released on May 5, Youssef Squali from Truist Financial maintained a Buy rating on LendingTree, Inc. (NASDAQ:TREE), lowering the firm’s price target to $60 from $72. The rating update came after the company reported “mixed” fiscal Q1 2025 results and guidance.
Truist Financial expressed optimistic sentiments for the stock, stating that factors like LendingTree, Inc.’s (NASDAQ:TREE) well-diversified revenue base, scale, and valuation make it a lucrative play amid the ongoing recovery in Insurance.
The analyst told investors in a research note that the firm also expects the Home and Consumer segment to undergo recovery over time as rates normalize. LendingTree, Inc.’s (NASDAQ:TREE) balance sheet is another factor supporting the positive rating, as it is adequate to support the current business, according to the analyst.
LendingTree, Inc. (NASDAQ:TREE) operates an online loan marketplace for consumers looking for loans and other credit-based offerings. The company’s operations are divided into three segments: Home, Consumer, and Insurance.
6. Enovis Corporation (NYSE:ENOV)
Market Cap: $1.72 billion
Analyst Upside: 85.98%
Number of Hedge Fund Holders: 31
Enovis Corporation (NYSE:ENOV) is one of the 13 Small Cap Stocks Analysts Are Bullish On. On May 28, Jefferies analyst Young Li maintained a Buy rating on Enovis Corporation (NYSE:ENOV) and set a price target of $60.00. The positive rating was based on several key factors, as the company reported a strong start to the year with notable growth figures in fiscal Q1 2025.
Its net sales for the quarter grew 8% on a reported basis compared to the same quarter in 2024, while adjusted EBITDA reached $99 million, or 17.7% of sales. This translates to a 160 basis points growth compared to last year.
The analyst attributed the growth to the company’s successful commercial execution and integration efforts, as well as additional potential from cross-selling opportunities and new product launches.
Enovis Corporation (NYSE:ENOV) is also increasing its free cash flow conversion and expanding margins, which positions it well for future profitability. The analyst further reasoned that the company has an attractive valuation and is trading below its peers, which points toward the potential for multiple expansions.
Enovis Corporation (NYSE:ENOV) is a medical technology growth company that develops clinically differentiated solutions to transform workflows and generate better patient outcomes. The company operates through the Prevention & Recovery and Reconstructive segments.
5. Praxis Precision Medicines, Inc. (NASDAQ:PRAX)
Market Cap: $862.42 million
Analyst Upside: 94.85%
Number of Hedge Fund Holders: 33
Praxis Precision Medicines, Inc. (NASDAQ:PRAX) is one of the 13 Small Cap Stocks Analysts Are Bullish On. On June 12, Truist Financial analyst Joon Lee maintained a Buy rating on Praxis Precision Medicines, Inc. (NASDAQ:PRAX) without a price target.
The company reported in its fiscal Q1 2025 results that it is on track for six major study readouts across four programs over 12 months, and is ready to start the pivotal studies in two developmental and epileptic encephalopathy (DEE) programs in mid-year 2025. These include the EMERALD for broad DEEs with relutrigine and EMBRAVE3 for SCN2A GoF with elsunersen.
Management anticipates topline near-term results for vormatrigine from the RADIANT study in epilepsy by mid-2025, along with the POWER1 study in H2 2025. Vormatrigine is continuing to exhibit competitive differentiation and an ideal profile, bringing a positive light to Praxis Precision Medicines, Inc. (NASDAQ:PRAX).
Praxis Precision Medicines, Inc. (NASDAQ:PRAX) is a clinical-stage biopharmaceutical company that develops therapies for central nervous system disorders characterized by neuronal excitation-inhibition imbalance. The company focuses on two proprietary platforms: Cerebrum and Solidus.
4. Anterix Inc (NASDAQ:ATEX)
Market Cap: $513.09 million
Analyst Upside: 171.69%
Number of Hedge Fund Holders: 26
Anterix Inc (NASDAQ:ATEX) is one of the 13 Small Cap Stocks Analysts Are Bullish On. On April 10, Craig-Hallum analyst George Sutton maintained a Buy rating on Anterix Inc (NASDAQ:ATEX) without a price target. The company’s fiscal Q3 2025 results showed cash and cash equivalents of $28.8 million as of December 31, 2024. It also reported around $147 million of contracted proceeds outstanding, with $34.0 million received from Oncor Electric Delivery Company in January 2025 and $1.0 million received from Ameren Corporation in October 2024.
Management is projecting an approximately 20% operating expenses run rate reduction for fiscal 2026. Anterix Inc (NASDAQ:ATEX) also has an estimated $3 billion pipeline of prospective contract opportunities across 60+ potential customers.
Anterix Inc (NASDAQ:ATEX) is involved in commercializing spectrum assets to allow targeted utility and critical infrastructure customers for the deployment of private technologies, broadband networks, and solutions. The company’s solutions include Private LTE and Active Ecosystem.
3. Janux Therapeutics, Inc. (NASDAQ:JANX)
Market Cap: $1.40 billion
Analyst Upside: 238.98%
Number of Hedge Fund Holders: 41
Janux Therapeutics, Inc. (NASDAQ:JANX) is one of the 13 Small Cap Stocks Analysts Are Bullish On. On May 14, JonesTrading analyst Soumit Roy maintained a bullish stance on Janux Therapeutics, Inc. (NASDAQ:JANX), giving it a Buy rating with a $90 price target. The analyst based the rating on the company’s promising developments and future potential.
Janux Therapeutics, Inc. (NASDAQ:JANX) is expected to release additional data from its Phase 1 trials for JANX007 and JANX008 in H2 2025, which the analyst projects could affect its market position.
JANX007, a T cell-engaging antibody, is expected to be in competition with Pluvicto. Despite a complicated administration, Pluvicto already holds a considerable market share. However, the analyst reasoned that JANX007 could experience faster market adoption if it exhibits efficacy comparable to Pluvicto, which would positively impact Janux Therapeutics, Inc. (NASDAQ:JANX).
The analyst also noted that the safety profile of JANX007 would be critical, especially in regard to steroid use post-CRS resolution. Therefore, Roy reasoned that investor interest could grow with a favorable safety outcome.
Janux Therapeutics, Inc. (NASDAQ:JANX) is a preclinical stage biopharmaceutical company that develops therapeutics based on the Tumor Activated T Cell Engager platform technology. The company develops tumor-activated immunotherapies for cancer through two bispecific platforms: Tumor Activated T Cell Engagers (TRACTr) and Tumor Activated Immunomodulators (TRACIr).
2. Structure Therapeutics Inc. (NASDAQ:GPCR)
Market Cap: $1.25 billion
Analyst Upside: 272.76%
Number of Hedge Fund Holders: 41
Structure Therapeutics Inc. (NASDAQ:GPCR) is one of the 13 Small Cap Stocks Analysts Are Bullish On. Jefferies analyst Roger Song maintained a Buy rating on Structure Therapeutics Inc. (NASDAQ:GPCR) on June 5, setting a price target of $79.00.
The analyst reasoned that Structure Therapeutics Inc. (NASDAQ:GPCR) is poised to experience a catalyst-rich H2 2025 as its clinical trials are expected to undergo significant developments. Management expects two Phase 2b readouts in Q4, along with the initiation of the amylin first-in-human study by the end of the year.
According to Song, these milestones are critical as they can determine the safety and efficacy of the compounds, especially the ‘1290 compound, with the potential to differentiate from competitors.
Structure Therapeutics Inc. (NASDAQ:GPCR) is also exploring strategic partnerships for commercialization and ensuring manufacturing readiness as part of strategic preparations for Phase 3 trials. The analyst considers it well-positioned to capitalize on emerging opportunities and advance its clinical programs, supported by a cash runway extending to 2027.
Structure Therapeutics Inc. (NASDAQ:GPCR) is a clinical-stage global biopharmaceutical company that develops novel oral therapeutics for the treatment of a range of chronic diseases with unmet medical needs. The company’s pipeline includes Aleniglipron GSBR-1290, ACCG-2671, GIPR, GCGR, ANPA-0073, and LTSE-2578.
1. Tectonic Therapeutic, Inc. (NASDAQ:TECX)
Market Cap: $369.90 million
Analyst Upside: 306.36%
Number of Hedge Fund Holders: 20
Tectonic Therapeutic, Inc. (NASDAQ:TECX) is one of the 13 Small Cap Stocks Analysts Are Bullish On. On June 10, Raymond James resumed coverage of Tectonic Therapeutic, Inc. (NASDAQ:TECX) with an Outperform rating and set a $76 price target. The rating update was accompanied by a broader research note on Biotech names.
The analyst told investors in a research note that risk/reward skews favorably across the sector. Although companies with a higher probability of success (PoS) lead assets result in a higher conviction, the most outsized returns may be attained by highly attractive skews on less de-risked assets.
Raymond James reasoned that for Tectonic Therapeutic, Inc. (NASDAQ:TECX), its lead asset, TX45, offers one of the most attractive risk-reward propositions in the biotech landscape, which is currently experiencing favorable skew and suppressed valuations.
The ongoing Phase 2 by Tectonic Therapeutic, Inc. (NASDAQ:TECX) targets a high unmet need indication, favorably aligning with relaxin’s multi-modal mechanism of action, according to the firm.
Tectonic Therapeutic, Inc. (NASDAQ:TECX) is a clinical-stage biotechnology company that discovers and develops therapeutic proteins and antibodies modulating the activity of G protein-coupled receptors (GPCR). The company develops a proprietary technology platform called GEODe to develop and discover GPCR-targeted biologic medicines.
While we acknowledge the potential of TECX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TECX and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
