If you are wanting some exposure to the smaller side of the market, then it could be worth considering the ASX All Ords stock in this article.
That’s the view of analysts at Bell Potter, who have just slapped a buy rating on its shares.
Which ASX All Ords stock?
The stock that the broker is bullish on is Cogstate Ltd (ASX: CGS).
Bell Potter highlights that this ASX All Ords stock is a highly specialised and leading service provider to over 100 global biopharma customers in the clinical trials industry.
Its core offerings include digital endpoint assessments, clinician training, and central monitoring solutions. The company operates predominantly in Central Nervous System (CNS) conditions, where trial endpoints are more subjective than other disease areas such as oncology.
What is the broker saying?
Bell Potter was pleased with Cogstate’s performance during the first half of FY 2026 and highlights its sizeable revenue backlog.
The good news is that the broker believes there are a number of positive thematics supporting this momentum in the coming years. It explains:
The strong increase in 1H26 new contract sales ($41.7m) resulted in a +$16.0m increase to CGS’s revenue backlog (now $92.3m). We see several positive thematics supporting this momentum in the years ahead, driving our forecasts of 11%/10% revenue growth in FY26/27 and EPS growth of ~21% in FY27.
These thematics include: (1) the number of Alzheimer’s disease clinical trials is expected to continue growing over the coming years; (2) CGS diversifying revenue across a variety of CNS indications beyond Alzheimer’s; (3) leveraging the Medidata strategic collaboration to drive new sales opportunities; and (4) remaining one of few fully independent providers not tied to a global CRO following recent M&A activity in the sector.
Big potential returns
According to the note, the broker has initiated coverage on the ASX All Ords stock with a buy rating and $2.90 price target.
Based on its current share price of $2.17, this implies potential upside of 34% for investors over the next 12 months.
Commenting on its buy recommendation, Bell Potter said:
We re-initiate coverage of CGS with a BUY recommendation and $2.90 PT. Cogstate is a highly profitable company (~19% NPAT margin) trading on attractive multiples relative to domestic and global peers. The forward EV/EBITDA of ~11x is well below the domestic peer average of >20x and below the global CRO avg of ~14x, notwithstanding its attractive growth outlook.
Our PT is comfortably supported by the DCF valuation (9.0% WACC, 3.0% TGR). Considering the recent pull back across software and speculative healthcare names, CGS provides a compelling investment case by virtue of its existing profitable business, attractive valuation, and multiple positive thematics.
The post Bell Potter just initiated coverage on this exciting ASX All Ords stock with a buy rating appeared first on The Motley Fool Australia.
Should you invest $1,000 in CogState Limited right now?
Before you buy CogState Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CogState Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 Jan 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
Motley Fool contributor James Mickleboro 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 Cogstate. The Motley Fool Australia has positions in and has recommended Cogstate. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.