Cogstate Ltd (ASX: CGS) shares are in focus today after a big climb yesterday.
The ASX healthcare stock was one of many ASX shares to enjoy a strong rebound after President Trump set a deadline for Iran to reopen the Strait of Hormuz.
Cogsgate shares jumped an impressive 12% during yesterday's trading session.
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Why did Cogstate shares climb yesterday?
It seems investors were reacting positively to not only international market tailwinds but also to the company's 3Q26 Business Update.
Cogstate is a neuroscience technology company specialising in brain health assessments. The principal activity of the company is the sale of technology and services to measure cognition.
In yesterday's release, the company said it continues to demonstrate strong demand across an expanding range of Central Nervous System (CNS) indications, consistent with trends outlined with the release of the 1H26 financial results.
The company reported total contracted revenue as at 31-Mar-26 has increased, reflecting the sales contracts executed during the quarter:
- Contracted revenue for the June 2026 half year (2H26), including revenue recognised during 3Q26, is $29.1 million, up from $21.7 million under contract at 31-Dec-25
- This brings full-year FY26 revenue under contract (including first half actual of $26.9 million) to $56.0 million (FY25 total revenue was $53.1 million)
- Contracted revenue for next financial year (FY27) is $35.6 million, up from $27.0 million under contract at 31-Dec-25
What did Bell Potter have to say?
Following this release, the team at Bell Potter provided updated guidance on Cogsgate shares.
The broker said the strong sales momentum is continuing for the healthcare stock, with the recent results representing the best quarter of new sales in at least 3 years.
Bell Potter said it was clearly a positive update, which increases confidence that the diversification and strong momentum seen in 1H26 were not just a 'one-off' and further growth in the revenue backlog looks likely.
Following the strong sales update, the broker has lifted its FY27 revenue forecast by 3% and its FY28 forecast by 5%.
Our updated FY26 forecast implies $3.2m of in-period additions in Q4 which seems quite achievable.
Buy recommendation intact
The broker also reiterated its buy recommendation for Cogsgate shares, along with increasing its price target to $3.20 (previously $2.90).
The broker said the company is trading at a discount to global peers (13x on avg) despite having a far more attractive topline growth outlook.
Based on yesterday's closing price of $2.40, Bell Potter's updated price target indicates a potential upside of 33%.
