Shares in EBR Systems Inc (ASX: EBR) are languishing near their 12-month lows despite the company making good progress on its commercialisation plans.

The analyst team at Morgans believe the shares are deeply undervalued at this point, and has a very bullish share price target on the company which I’ll get to shortly.

First let’s have a look at a recent announcement on the company’s business.

Solid progress on take-up of technology

EBR has developed a system called WiSE which it says is designed to overcome the limitations of conventional cardiac resynchronisation therapy and, “is the only leadless left ventricular endocardial pacing (LVEP) device”.

The company recently released a quarterly report and said that it had surpassed its hundredth commercial WiSE implant, “with multiple sites performing their first WiSE implants and numerous sites performing their 2nd, 3rd, 4th, and greater cases”.

EBR Chief Executive Officer John McCutcheon said:

We are extremely pleased with this quarter on multiple fronts. Commercially, EBR surpassed its 100th commercial WiSE implant, with multiple sites performing their first WiSE implants and numerous more experienced sites continuing to treat patients with WiSE. We secured master purchasing agreements with HCA Healthcare, Advocate Health, and CHRISTUS Health, validating the clinical and economic benefit of WiSE in major U.S. healthcare networks. In support of our future commercial efforts, the U.S. Centers for Medicare & Medicaid Services (CMS) further advanced WiSE through the Transitional Coverage for Emerging Technology (TCET) program by formally initiating the National Coverage Determination process for WiSE.

The company also fully transitioned to its new manufacturing facility in California, Mr McCutcheon said.

During the quarter, EBR had operating cash outflows of $25 million, but also completed a $150 million capital raise.

Shares in this ASX biotech looking very cheap

Morgans said in its note to clients issued this week that they believed the commercial roll out, “has progressed further than the headline implant numbers suggest, but execution capacity has temporarily become a key variable”.

Morgans added:

Management is now deliberately de-emphasising new site contracting and physician training to focus on repeat utilisation within existing accounts. This should reduce the administrative burden on the field organisation and allow trained representatives to spend more time supporting procedures. Thus, we view implant productivity per activated account rather than the number of contracted hospitals as the key near-term variable. With 17 sites already having completed ≥3 cases, we see an opportunity for utilisation to compound as physicians gain experience and WiSE becomes embedded in clinical workflows.

Morgans said the company had moved beyond the question of whether hospitals would buy WiSE, to proving whether they could generate repeat sales.

They added, “we view the existing footprint as adequate to provide substantial gains not reflected in the current share price”.

Morgans has a share price target of $1.95 on EBR shares compared to 30.5 cents currently.

The company is valued at $214.7 million.

The post Could this ASX biotech really jump more than 500%? appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. 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.

Telstra Group Ltd (ASX: TLS) is one of those businesses I think can suit investors looking for steady long-term returns rather than excitement.

With the shares trading close to their 52-week low, I think the current price deserves a closer look.

If I had $5,000 to invest today, I would be comfortable putting it into Telstra shares.

The income case is still strong

Telstra shares are trading around $4.60.

According to CommSec, analysts expect fully franked dividends per share of 22 cents in FY27 and 22.5 cents in FY28.

That puts the forward dividend yield at roughly 4.8% in FY27, before taking franking credits into account.

For an investor looking for passive income, I think that is attractive.

More importantly, the dividend is expected to keep edging higher rather than simply remaining flat.

Telstra has made a sustainable and growing dividend an important part of its strategy, and I think its recurring cash flows give it a good base from which to support those payments.

Mobile and internet services are regular household expenses, so Telstra continues receiving revenue from millions of customers every month.

That makes the income case easier for me to understand and gives shareholders a reason to hold the stock through quieter periods.

The business has defensive qualities

I also like Telstra because demand for its core services does not disappear when economic conditions weaken.

People still need mobile phones, internet connections, and access to digital services.

Businesses also rely heavily on telecommunications infrastructure to operate.

Telstra still faces economic pressure, competition, and changing customer behaviour, although I think demand for its services is more resilient than for many discretionary products.

For someone investing $5,000 and looking to hold for years, that stability has real value.

I would be much more comfortable owning a business whose products remain part of everyday life than relying on a company that needs consumers to keep spending freely.

There is still room for modest growth

Telstra does not need strong earnings growth to produce a respectable long-term result.

CommSec forecasts earnings per share of 20.8 cents in FY27 and 21.6 cents in FY28.

That is not explosive growth, but it does point in the right direction.

I think the more interesting part is how Telstra can keep improving the business around its existing customer base.

Its mobile network remains central to the company, while investments in fibre, satellite connectivity, enterprise services, and other infrastructure can create additional opportunities over time.

If Telstra can grow earnings gradually while continuing to increase its dividend, I think shareholders could receive a combination of income and moderate capital growth.

For me, that is enough to make the shares interesting at the current price.

Foolish takeaway

Yes, I would invest $5,000 into Telstra shares at around $4.60.

I like the combination of fully franked income, resilient demand, and the potential for steady earnings growth over time.

For investors seeking income and a relatively defensive long-term holding, I think the current share price looks attractive.

The post Would I buy Telstra shares with $5,000 as they near a 52-week low? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) are two of Australia’s biggest banks.

Both offer exposure to the Australian economy, home lending, deposits, business banking, and dividends.

But if I were choosing between them today, which one would I buy?

Why CBA shares stand out

CBA remains my preferred Australian bank because I think it has the strongest overall franchise.

Its enormous customer base gives it relationships across everyday banking, mortgages, business banking, credit cards, payments, and investing.

I particularly like the way CBA has invested in technology around those customers.

The CommBank app has become an important part of how millions of Australians manage their finances, and the bank continues adding services that can make customers more likely to stay within its ecosystem.

That technology investment can also help CBA operate more efficiently, make decisions faster, and improve areas such as fraud detection and customer service.

Business banking gives me another reason to be positive.

CBA has built a substantial position with Australian businesses, giving it another avenue for growth alongside its dominant retail banking operations. Business customers can use the bank for lending, deposits, payments, and other services as their companies develop.

For me, CBA has several strong parts of the business working together, and I think that makes it a high-quality long-term holding.

What about Westpac shares?

Westpac is certainly not a bad bank.

It has millions of customers, a huge deposit base, and one of Australia’s largest mortgage businesses. It is also investing to improve its technology and strengthen areas such as business banking.

The shares also trade on a lower price-to-earnings ratio than CBA and offer a higher dividend yield.

That could make Westpac more attractive to investors who place greater weight on income or who want to pay a lower multiple for a major bank.

My hesitation comes from the growth outlook. I remain concerned about Westpac’s heavy exposure to Australian housing at a time when home lending growth could become more difficult. Recent weakness in mortgage applications has reinforced that concern for me.

The bank is working to expand elsewhere, particularly in business banking, but I would like to see more progress before becoming more positive.

A cheaper valuation can certainly improve the investment case. I still want to feel confident that the underlying business has enough ways to grow over the years ahead.

Are CBA shares worth paying more for?

CBA shares normally command a substantial premium over Westpac shares, and investors need to decide whether the quality of the business justifies paying more.

I think it does. I would rather pay a higher price for the bank I believe has the stronger customer franchise, better technology, and more attractive long-term growth opportunities.

Of course, CBA still needs to execute well. A premium valuation leaves less room for disappointment, and banking conditions can change quickly.

But when I am investing with a long holding period, I tend to put more weight on the quality of the business than simply choosing whichever share looks cheaper.

Foolish takeaway

If I had to choose between CBA and Westpac shares today, I would buy CBA.

Westpac offers a lower valuation and stronger prospective income, which may suit some investors.

For me, though, CBA’s customer relationships, technology, and business banking position give it the stronger long-term investment case.

The post CBA vs Westpac shares: Which is the best buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.