What happened
Broker Morgans issued a buy rating and $4.07 price target for Cogstate (ASX: CGS), citing record contracted future revenue of US$118.5 million, up 32% year-on-year, and US$34.7 million in cash. Morgans also reiterated a buy rating with a $4.24 target for Nufarm (ASX: NUF), noting expected deleveraging and a A$50 million cost reduction program.
Why it matters here
Stock picks backed by balance sheet strength and expanding revenue pipelines offer resilient opportunities during broader market drawdowns. Cogstate benefits from high incremental margins and zero debt, while Nufarm offers valuation leverage as agricultural chemical earnings recover and planned operational improvements take effect over FY27.
What to watch
Nufarm’s upcoming investor day presentation for operational guidance updates and Cogstate’s ongoing contract execution milestones.
Source
fool.com.au