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.
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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.
