Many analysts believe that interest rate cuts will put a rocket under small cap ASX shares, which have been underperforming during the rate hike cycle.

And while Australian interest rates may not be heading lower until next year, it could pay for investors to get in early with small caps.

But which small cap ASX shares could be buys before interest rates fall? Let's take a look at a couple that analysts at Bell Potter and Morgans rate highly today. They are as follows:

Aeris Resources Ltd (ASX: AIS)

The team at Bell Potter thinks that investors should be buying copper miner Aeris Resources.

Particularly given the bullish outlook for the base metal. Its analysts have a buy rating and 27 cents price target on the small cap ASX share. This implies potential upside of 17% for investors from current levels.

It likes Aeris Resources due to its strategically attractive Tritton asset. It explains:

AIS is a copper dominant producer with all its assets in Australia. Its near-term outlook is highly leveraged to the copper price and increasing grades and production at the Tritton copper mine. Successful delivery offers significant upside and a strategically attractive asset in Tritton, making AIS vulnerable as a corporate target. Retain Buy.

AVITA Medical Inc (ASX: AVH)

Analysts at Morgans think that this commercial-stage regenerative medicine company could be a small cap ASX share to buy right now.

Last month, the broker put a buy rating and $4.56 price target on its shares. This suggests that upside of 50% is possible for investors over the next 12 months from current levels.

Morgans rates the company highly. This is due largely to its Recell product, which the broker believes has a huge growth opportunity thanks to its expanded indication. It recently said:

AVH is a regenerative medicine company focusing on the acute wound care market. It has recently expanded its indication into full thickness skin defects and Vitiligo (US$5bn TAM). The expanded indication in full thickness skin defects has the required reimbursement in place and sales have started. AVH has provided revenue guidance for FY24 of growth of ~64% [now 40% to 48%] importantly has guided to achieving profitability by 3QCY25. At the same time, the company is seeking approval [now has been approved] by the FDA for its automated device RECELL Go, which if successful will launch 1 June 2024, and will be a meaningful driver of rapid adoption by clinicians.