If you are on the lookout for some investment ideas, then read on. That's because Bell Potter has been busy picking out its best ideas for April from the smaller side of the market.
Listed below are two more ASX shares that the broker has just named as best buys for the month ahead. Here's what it is saying about them:
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Cogstate Ltd (ASX: CGS)
This digital cognitive assessment-focused healthcare technology company could be an ASX share to buy according to Bell Potter.
It highlights that the company has a significant contracted revenue backlog, which should be supportive of growth in the near term. The broker commented:
Cogstate is a healthcare technology company specialising in digital cognitive assessments, primarily for biopharma clinical trials across central nervous system indications including Alzheimer's disease, rare diseases, and broader CNS conditions. Founded in 1999 and ASX-listed since 2004, the company's core offerings span digital assessments for trial endpoints, rater training and certification, and central monitoring solutions.
CGS has worked with over 160 biopharma customers and is currently active across more than 130 clinical trials. The business model is underpinned by a contracted revenue backlog — currently $92.3m — though revenue recognition can be lumpy given its dependence on trial size, phase, and duration.
Praemium Ltd (ASX: PPS)
Another ASX share that has been named as a best buy in April by the broker is investment platform provider Praemium.
Bell Potter highlights that the company's shares are attractively priced at around 16x forward earnings and suspects that a re-rating could take place if it continues to grow its market share and funds under administration (FUA).
Commenting on the company, the broker said:
Praemium Ltd was formed in 2001 as a financial technology company that operates an investment platform offering alongside a branded online portfolio administration service, supporting financial intermediaries and individual investors in their managing wealth. The integrated technology simplifies portfolio management end-to-end and delivers a complete value proposition. Today, PPS manages +$60bn in custodial and non-custodial FUA.
While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~15.9x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.
