4 ASX stocks with 2x potential, according to brokers

Earlier this week I wrote about the near-term prospects of the ASX 200's best-performers in 2025, a list dominated by gold miners.

But further down the market, there's a handful of small-cap stocks that, according to brokers, have the potential to emulate the returns of those top performers. 

Using Market Index's broker consensus tool, I've identified the four stocks currently rated a Strong Buy and with upside potential of more than 100%, according to consensus price targets. 

Please note that share prices are taken from before market open on Thursday, 4 December. 

1. Paragon Care (ASX: PGC)

• Sector: Healthcare
• Current price: $0.25
• Consensus price target: $0.55
• Potential return: 120%

Paragon is a small-cap medical device provider with business throughout Asia and ANZ.

It recently announced the acquisition of medical provider PT Haju Medical Indonesia for $70 million, a 9.1x multiple of December 2024 earnings. The deal will be completed in January 2026 and will expand Paragon's presence in the country and boost earnings.

"PGC's interests in South East Asia are set to become a major driver of earnings growth, complementing the 30% growth in regional gross profit achieved in FY25," Bell Potter wrote in a recent note. "Elsewhere, the company continues to re-invest for long-term growth, which recently included the first major win for the diagnostics manufacturing business at the newly completed facility at Glen Waverly."

But Paragon issued FY guidance in mid-November showing revenue would come in around $3.6-3.7 billion, below consensus estimates of $3.84 billion.

The PGC share price has fallen from $0.40 to $0.25 after its FY25 results came in under expectations. Bell Potter has retained a $0.49 12-month price target, with Euroz Hartleys targeting $0.59. 

2. Electro Optics Systems Holdings (ASX: EOS)

• Sector: Industrials
• Current price: $4.46
• Consensus price target: $9.76
• Potential return: 118%

Remote weapons systems manufacturer Electro Optics has enjoyed a strong 2025 as a result of increased defence spending, specifically in Europe. The EOS share price rose from around $1.10 to a high of $10.37 at the start of October, but has since retraced to $4.46 as part of a broader selloff in defence stocks.

The company also recently admitted to breaching disclosure agreements after failing to report a decline in its 2022 revenue forecasts. It may need to pay $4 million as part of a settlement with ASIC, with the regulator also commencing proceedings against CEO Dr Ben Greene.

Revenue is expected to reach $245 million in FY26, with EBITDA moving positive to $17.6 million as it strengthens its position in the C-UAS (counter-unmanned aerial systems) sector. 

MPC Markets' Mark Gardner wrote for Livewire back in September, "As nations focus on affordable ways to counter drones and missiles, EOS is in a sweet spot - sales are picking up 25-30% yearly, and we reckon it could rise 40-70% over time. The real edge? Their lasers cost pennies per shot compared to traditional missiles. Cash flow is improving too, with $20 million on hand."

It has also acquired drone interceptor business MARSS Group for $10 million, but doesn't expect a full commercial launch for another 12-24 months. 

"EOS is positioned as a market leader in C-UAS solutions and is leveraged to increasing budget allocations to C-UAS technologies," wrote Bell Potter. "We see positive news flow over the next 6 months stemming from C-UAS and RWS contract awards. Following the award of the A$20m Slinger contract in Nov-25, we estimate that our CY26e revenue forecast is 59% secured by announced contracts."

Ord Minnett lists EOS as a "speculative buy", with a price target of $11.18, arguing "our investment thesis of increasing geopolitical tensions and defence expenditure on C-UAS, RWS and Space remains unchanged."

Bell Potter also considers it a buy, but has revised its price target down from $11.20 to $8.10 as a result of reducing its EV/EBITDA multiple from 70x to 50x due to the increasing likelihood of a Ukraine peace deal. 

3. Meteoric Resources NL (ASX: MEI)

• Sector: Materials
• Current price: $0.16
• Consensus price target: $0.34
• Potential return:  118%

Meteoric Resources is an Australian rare earths producer that is developing the Caldeira Project in Brazil and remains a speculative stock play, given its pre-revenue status and recent setbacks.

The vote to approve the Caldeira Project's Preliminary Environmental Licence was postponed in late November as a result of Brazil's State Foundation for Environmental (FEAM) requesting more time to respond to questions regarding the project. 

But Meteoric is confident the vote will pass by 19 January and the delay will have minimal impact on the project's timeline. This confidence has been reflected in recent broker notes, with all retaining a Buy or equivalent rating based on the project's potential. 

As Macquarie wrote in a recent note, "Becoming an ex-China rare earths company is never easy, given the stringent technology and equipment controls. Despite these challenges, MEI continues to make progress and, in our view, has the potential to become Brazil’s second operating rare earths producer after Serra Verde."

The MEI share price has retraced from $0.24 in late October to a current price of $0.15, with consensus price target of $0.34, suggesting 118% upside potential. 

4. Lotus Resources (ASX: LOT)

• Sector: Energy 
• Current price: $0.16
• Consensus price target: $0.33
• Potential return: 106%

Formerly known as Hylea Metals, Lotus is a uranium developer based in WA, with uranium projects in Malawi and Botswana.

Having been decommissioned since 2014, Lotus recently reported its first mining blast at its Kayelekera open pit, and has reaffirmed its steady-state production target for uranium ore of 200,000 lbs a month by Q1 2026.

It had increased its cash balance of $97 million as of the end of November to assist with the restart of Kayelekera, and is forecasting $85.6 million in revenue for FY26, and $234.2 million for FY27.

"As LOT enters ramp-up phase, we consider there will be numerous positive catalysts over the next 6 months," wrote Macquarie in a recent note. "These include first mining; qualification of U3O8 by conversion plants; first commercial drummed yellowcake shipments; and first cash sales receipts in JunH-26. LOT will also seek to enter further fuel contracts but with floating rather than fixed rates, which we consider would be well received by the market."

LOT was trading above $0.24 as of mid-October, but has recently traded around $0.16 after a volatile year. It is currently a Speculative Buy at Bell Potter, Canaccord Genuity and Ord Minnett, with a consensus price target of $0.33.