We asked our freelance writers to share their top ideas for stocks listed on the Alternative Investment Market (AIM) for investors to consider buying!
Bioventix
What it does: Bioventix specialises in the supply of high-affinity monoclonal antibodies for applications in clinical diagnostics
By Paul Summers. There’s not an abundance of quality AIM-listed companies. One exception is arguably Bioventix (LSE: BVXP). The Farnham-based developer and commercial supplier of monoclonal antibodies consistently posts some of the highest operating margins in the entire UK stock market!
All that said, investor confidence has been knocked after the company disclosed it had overstated revenues. Even though the miscalculation appears to be due to an error on the part of one of its customers, this has pushed the shares down significantly in value as a result of the company now failing to hit analyst expectations.
However, I reckon now is a great time to consider loading up. Bioventix remains a leader in its niche market. The current valuation is also significantly below the firm’s five-year average. While never guaranteed, the dividend yield currently stands at 5.8% and the balance sheet looks very healthy indeed.
Paul Summers has no position in Bioventix.
dotDigital
What it does: A digital marketing enterprise helping businesse monetise their audiences and improve customer experience.
By Zaven Boyrazian. When it comes to digital marketing, dotDigital (LSE:DOTD) isn’t short on competition. Yet, as economic conditions have improved, the firm has continuously maintained double-digit revenue and profit growth that seems to have gone ignored by investors.
The small-cap enterprise now generates an average of £1,916 per month from each of its customers, almost double the amount compared to five years ago. And a big part of the rising spending trends is courtesy of management’s investments into its technology, including an AI prediction engine to maximise customer conversion through personalisation.
It’s a powerful tool that few of its competitors provide. And with new marketing channels like WhatsApp being added into the mix, dotDigital is slowly becoming a one-stop-shop for everything that is marketing.
Larger rivals like Hubspot remain a serious threat. However, with larger customers like Mountain Warehouse and British Airways joining the client list, this AIM-listed enterprise seems to be taking the right steps.
Zaven Boyrazian owns shares in dotDigital.
Serabi Gold
What it does: Serabi Gold owns a series of mining projects in Brazil, including the Palito and Coringa complexes.
By Royston Wild. Precious metal stocks like Serabi Gold (LSE:SRB) continue to go from strength to strength. This yellow metal miner is up a stunning 39% in the year to date, propelled by gold prices rising through the $3,000 per ounce marker for the first time.
With this key psychological and technical level taken out, metal values — and with them the prices of Serabi and its peers — could strengthen further.
The African miner’s low valuation certainly leaves room for further gains. Today it trades on a forward price-to-earnings (P/E) ratio of just 3.4 times.
I don’t just believe Serabi Gold is a great stock to consider buying for the current bull run, however. Through a blend of organic growth and acquisitions, the business has plans to turbocharge earnings by lifting production to 200,000 ounces a year over the next few years.
That’s up from the 60,000 ounces planned for 2026. Remember, though, that mining is risky business, and any setbacks at the exploration, production or mine development phases could prove disastrous for profits projections, and with it the share price.
Royston Wild does not own shares in Serabi Gold.
Tristel
What it does: Tristel makes and distributes chlorine dioxide wipes that are used for disinfecting hospital environments.
By Stephen Wright. Shares in Tristel (LSE:TSTL) have fallen almost 30% since the start of the year. I think that’s a lot for a company that still has a lot of potential.
Tristel is in the process of expanding to start selling its (patented) chlorine dioxide wipes across the Atlantic. But getting into the US has proved challenging.
With a premium product, there’s always a danger of customers being unwilling to move away from established practices. And that’s the risk with the stock.
I think, however, the potential rewards are worth it. Tristel has been following up its ultrasound disinfectant system with a product for ophthalmic devices and this looks promising to me.
If the company can make a breakthrough on this front, I think there could be huge growth ahead. If not, there’s a dividend with a 4.6% yield to fall back on.
Stephen Wright owns shares in Tristel.
YouGov
What it does: YouGov is a market research and data analytics company.
By Alan Oscroft. In a first-half update on 31 March, YouGov (LSE: YOU) said it only “expects modest revenue growth for the rest of the financial year as trading conditions remain challenging reflecting the current macro-economic backdrop.“
The company is still searching for a new permanent CEO after Steve Hatch left by mutual agreement in February. And when interim CEO Stephan Shakespeare talks about a “resilient” performance, and he mentions “considerable change” and “execution challenges,” then we can tell things have been a bit tough.
But the company still says it should meet market expectations for the full year. And it expects operating profit to be balanced more equally between the two halves.
There are clearly risks here, and the share price could remain depressed for some time yet. But analysts expect positive earnings per share (EPS) this year, and then an 80% boost by 2027 that would take the price-to-earnings (P/E) ratio down to only about eight.
Alan Oscroft has no position in YouGov.
