COGSTATE LIMITED (CGS)
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28/09/2026

1

Initiation of coverage with Buy

$4.07

15.30%

Morgans initiates coverage of Cogstate with a Buy rating and $4.07 target price.

The company is noted as a high-quality provider of digital cognitive assessment and endpoint data to the clinical trials industry, or a neuroscience technology company.

After a record FY26, commentary notes FY27 has started with gusto, contracted revenue is up 32% y/y and stands at a record US$118m.

Management's two-year technology program is also expected to underwrite higher margins as volumes pick up without an increase in headcount.

Cogstate is debt-free with cash of US$34.7m, with the analyst noting its strength has been in Alzheimer's disease, with FY26 marking a strategic shift to other segments including psychiatric disorders, rare diseases, sleep disorders and neurological conditions.

The stock has re-rated on better earnings quality and predictability, the broker states, with ongoing scope to deliver ongoing contract growth and improved scale into better margins, seen as likely.

FORECAST
Morgans forecasts a full year FY27 dividend of 4.03 cents and EPS of 12.95 cents.
Morgans forecasts a full year FY28 dividend of 4.32 cents and EPS of 17.27 cents.

13/10/2026

1

Buy

$4.15

17.56%

Canaccord Genuity maintains a Buy rating for Cogstate with its target price increased to $4.15 from $3.44 following a solid first-quarter sales update featuring executed net sales contracts of US$25.1m.

The result represents a 17% increase on the prior corresponding period, driven by five competitive Phase III clinical trial wins in mood disorders spanning two customers.

The analyst notes these contract wins demonstrate the channel partnership strategy is successfully translating into market share gains and expanding the partner network.

While the greater weighting towards longer-duration Phase III studies reduces upfront licence fee revenue recognition to 7%, secured revenue for FY27 now stands at US$56.8m, covering 75% of the broker's US$76.1m forecast.

Improved revenue visibility across future periods prompts a roll-forward of the valuation model to apply a 5.0x enterprise value-to-sales multiple against the US$88.9m revenue forecast for FY28.