While many of the biggest ASX financials stocks have seen slow growth in 2026, Cuscal Ltd (ASX: CCL) has brought strong returns.

The S&P/ASX 200 Financials Index (ASX: XFJ) is up just over 2% year to date. 

Meanwhile, Cuscal shares have risen over 10% in the same span and over 52% in the last 12 months. 

What does Cuscal do?

Cuscal is a payment and regulated data services provider in Australia. 

The group offers a comprehensive suite of payment infrastructure solutions to a diversified client base. 

It enables a range of payment types, from physical cards to real-time payments, in the payment value chain and constantly evolves its offerings to meet the demands of a rapidly changing economy.

In the last 12 months, it has risen significantly on the back of a solid, growing business in a hot sector (digital payments). It has also been spurred on by strategic acquisitions and delivering the profit growth to back it up. 

Why it can continue 

A recent report from Ord Minnett has reinforced that there is still plenty of room for growth remaining. 

Ord Minnett said Cuscal’s share price has been supported by improved earnings momentum. This has been aided by the two strategically important acquisitions of Indue and Paymark. 

In addition, the FY26 price-to-earnings (P/E) multiple that investors have been willing to apply to Cuscal’s earnings has risen 21x from 11x at the time of the IPO to 21x currently. We see a forward P/E multiple of 18–20x as appropriate,given Cuscal’s strong defensive earnings growth outlook and B2B infrastructure positioning in the payments industry.

We expect FY26 results to beat market expectations, with net operating income (NOI) boosted by ongoing solid transaction volume growth and strong client deposit balances driving net interest income. Company guidance is for “mid-teens” underlying net profit growth in FY26, with Ord Minnett estimating growth of 16.8%.

Upside remains for this ASX financials stock 

‍Looking ahead, Ord Minnett believed the FY27 result will be underwritten by the contributions from Indue & Paymark. It projects further growth into FY29–30 as Cuscal banks the cost savings and other synergies from the acquisitions, and the outlook supports expectations for sustainable underlying net profit growth of 15–20% per annum. 

Based on this guidance, Ord Minnett has retained its buy recommendation on this ASX financials stock.

It has also retained its target price of $5.45.

From yesterday’s closing price of $4.89, this indicates a healthy upside of over 11%. 

The post Forget CBA shares, this ASX financials stock has strong momentum heading into FY27 appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

Mayfield Group Holdings Ltd (ASX: MYG) shot ahead of the ASX yesterday when it rose 9% in a single session. 

This brings its 12-month growth spree to over 152%. 

Despite already rising significantly this past year, the team at Bell Potter still believes there is more room for growth. 

Why did Mayfield Group shares rise?

Mayfield Group provides communication network solutions to government agencies, military organisations, and corporate clients

It appears Mayfield Group is enjoying strong investor interest following its announcement on July 13. 

The company  has entered into a binding Asset Sale Agreement to acquire Switchboards Division of Nilsen (SA) Pty Ltd (SDN), including its N-Series product line and associated intellectual property for a $4.0m cash consideration. 

The acquisition consideration will be funded from existing cash reserves. The deal is expected to complete on 31 July 2026, with progressive transfer of employees and assets through to 31 October 2026. SDN supplies products into the Commercial, Industrial, Infrastructure, Defence, Mining, Utilities and Data Centre construction markets.

In simple terms, Mayfield is spending $4 million to buy Nilsen’s switchboard business. 

This includes its products, skilled employees, customer orders, and technology to grow its sales, strengthen its manufacturing business, and increase future earnings.

What did Bell Potter have to say?

Following the announcement, Bell Potter provided updated guidance on this ASX stock. 

The broker said the move broadens Mayfield’s switchboard offering across key growth markets in Australia. 

It also strengthens the company’s ability to grow organically through an expanded workforce, IP and new customer relationships. Additionally, it enables the company to pursue larger and more diverse switchboard opportunities nationally.

The acquisition includes the transfer of $3.9m of WIH and is expected to add $10-15m of revenue in FY27 (effective November 2026; $15-23m annualised). Importantly, improved utilisation at the Royal Park facility should enhance site profitability.

Healthy upside 

Based on this guidance, the team at Bell Potter retained its buy recommendation on this ASX stock. 

However, it slightly lowered its price target to $3.20 (previously $3.40). 

From yesterday’s closing price of $2.41, this still indicates 32% upside. 

The SDN acquisition is strategic, supporting MYG’s expansion into new markets and with new customers. The acquisition consideration is not onerous; MYG maintains financial flexibility to continue pursuing other M&A opportunities.

We believe this valuation rebasing has created a good buying opportunity of a small-cap industrial business which we expect to deliver EPS growth of 36.7% in FY27 and 27.5% in FY28, and has strong upgrade potential.

The post After soaring 9% yesterday, is this ASX stock a buy, hold or sell? appeared first on The Motley Fool Australia.

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• How much passive income can I earn off a $50,000 portfolio?
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• Forget CBA shares, this ASX financials stock has strong momentum heading into FY27
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Motley Fool contributor Aaron Bell 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 recommended Mayfield Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A new report from the team at Bell Potter has tipped big upside for ASX financials stock COG Financial Services Ltd (ASX: COG). 

COG Financial Services is a collection of distribution businesses focused in Australia.

It provides access to credit (and related insurance) for commercial assets through a broker network and maintains the balance sheet capacity to fund direct originations, capturing some overflow on non-prime chattel mortgages. 

The acquisition of Paywise in 2023 marked a shift in the expansion and capital recycling approach, with greater strategic focus on novated leasing.

Year to date, its share price has fallen 30%, however Bell Potter is tipping a strong rebound in the next 12 months. 

Novated leasing 

Bell Potter highlighted that June was a record month for novated lease vehicle sales. 

Private buyers were up 11%, and business buyers were up 6%, even despite interest rates staying high. 

Some of this comes from normal seasonal price cuts, but carmakers also ran extra discounts through specific sales channels. 

Bell Potter expects this ASX financials company to sound upbeat about this part of the business, since electric vehicles’ share of sales jumped from 10% to 24%, marketing campaigns are working well, and BYD is running fresh cashback deals for specific orders placed in July and delivered by August.

In short, the company’s car-leasing business (novated) looks strong going into the results, driven by EV demand and discounts.

Broking 

The report from Bell Potter said ABS data on business investment won’t be released before COG reports its results. 

Therefore Bell Potter is basing its view on the broader weak economy and high interest rates, which are expected to weigh on the broking side of the business. 

Small business confidence is poor, having dropped sharply in March with little recovery since. Business investment plans hit a record low in April. 

On top of that, profit margins on loans keep shrinking, while loan volumes are actually rising. This pushes up the cost of running this part of the business.

Big upside in tact for this ASX financials stock 

Despite the mixed outlook, recent share price weakness makes this ASX financials stock an attractive proposition. 

Bell Potter has retained its buy recommendation and has an updated price target of $2.10. 

From yesterday’s closing price of $1.425, this indicates an upside potential of 47%. 

Recent commitment from government has extended the adjustment on electric vehicles and made this measure permanent. We see this as a multi-year-outcome, enhanced through successful tendering.

The post Top broker tips 47% upside for this ASX financials stock  appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.