COG Financial Services (COG), CSL Ltd (CSL) & EBR Systems (EBR)
Hi team, why has COG gone up so much? Do you think it may be as good as it can get? Do you think CSL is now a bargain buy? Is EBR a long-term investment? Thanks
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Answer
Hi Sidney,
COG Financial Services (COG) is Australia’s largest asset finance aggregator, supporting over 8,500 brokers with access to a wide panel of lenders. The company which is based just around the corner from MM, has a market cap of ~~$425mn, also offers novated leasing and provides financing and asset management solutions to small and medium-sized enterprises.
- The stock has “Popped” of late with analysts liking its recent acquisition of salary packager EasiFleet believing it looks cheap on a post-synergy basis.
- The company delivered a solid FY25 result with profit of $18.8mn up 46% allowing the company to pay a 3c fully franked share.
We like COQ but its fully priced in the $2.10-2.20 region, we would call it an accumulate below $2.
CSL Ltd (CSL) is not a bargain buy, in our opinion, its more like good solid relative value based a few recent misteps. We topped up our holding this week believing it represented reasonable buying ~$200 but the sellers still remain in control following their disappointing result in August. We moved from a 4% target to a 5% target, which is now mildly overweight relative to the index of 3.7%.
EBR Systems (EBR) is a California-based medical device company developing the WiSE CRT System, the world’s first leadless cardiac resynchronization therapy for heart failure patients. With a market cap of around $550 million, the company has secured FDA approval but remains pre-revenue and continues to burn significant cash. This has weighed on sentiment, leaving EBR shares under pressure in 2025 despite the regulatory milestone.
- The company has already raised cash four times in the last three years leaving investors uncertain if more will be needed as they head towards a full-commercial launch and broader sales ramping into 2026. Expectations have been tempered as the company transitions from regulatory success to the more challenging phase of commercialisation – which is where a lot of companies can come unstuck.
We are 50-50 on EBR, along with biotech’s its not the space MM often ventures into.
