Bell Potter says this ASX small cap could rise 92%

Cybersecurity company Infotrust Ltd (ASX: ITS) hasn't been a winner for shareholders over the past year, with its shares falling by slightly more than 50%.

But according to the team at Bell Potter, the company is now well-positioned and could deliver significant upside.

I'll get to their price target on the company shortly. First, let's look at Infotrust's recent full-year results.

Revenue growing strongly, but profit flagging

The company reported revenue of $64.1 million in FY26, up 9.8%; however, underlying EBITDA fell 20.3% to $2.7 million.

Including the loss the company booked on the sale of its cloud and communications division, Infotrust booked a net loss of $23.1 million.

The company said following that divestment, it was solely focused on cybersecurity.

The company said in its results report:

Following the divestment of the Cloud and Communications segment during FY26, the Company's operations are exclusively focused on cyber security, digital resilience and associated technology services under the "Infotrust" brand. The Australian cyber security market continues to benefit from structural demand for cyber security and digital resilience, secure cloud adoption, data protection, identity security, AI governance and regulatory assurance. The market is also becoming more competitive and more consolidated, with customers seeking fewer, deeper technology partners that can provide trusted expertise, local accountability and outcome-based services.

Infotrust said acquisitions were expected to remain a "disciplined accelerator" for the business, which was now better focused.

The company added:

Infotrust's strategy is to grow as a focused, trusted cyber-first technology services provider by deepening customer relationships, expanding cross-sell opportunities across the Company's existing customer base, packaging services into clearer market-facing offers and investing in high-growth cyber capabilities, including identity, data security, AI security and cloud security.

Shares looking cheap, broker says

Bell Potter said in its research note to clients that the company's financial results were close to its forecasts, while cash flow was better than forecast.

They said that Infotrust's FY27 guidance for $80 million in revenue was better than their $73 million forecast, while the forecast EBITDA of more than $6 million was in line.

Bell Potter added:

We have upgraded our FY27 and FY28 revenue forecasts by 8% and now forecast $78.5 million and $88.3 million. That is, we are slightly under the budgeted revenue forecast of $80 million in FY27 for conservatism. We have, however, downgraded our underlying EBITDA forecasts by 4% and 9% due to a reduction in our margin assumptions.

Bell Potter has reduced its price target on Infotrust to 48 cents from 58 cents; however, this remains well above the share price of 25 cents at the time of writing.

Infotrust is valued at $44.5 million.

The post Bell Potter says this ASX small cap could rise 92% 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 positions in and has recommended Infotrust. 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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