Azzet reports on three stocks with price moving updates today.
Codan soars on earnings upgrade ~
Shares in Codan (ASX: CDA) were trading 18.1% higher by 12:30 pm AEST (2:30 am GMT) after the metal detector and communications products manufacturer upgraded its earnings outlook for the 2026 fiscal year and reassured the market that its profit is tracking well ahead of expectations.
Based on improved trading conditions across communications and Minelab and operating leverage underpinning a step-change in margins, management now expects EBIT of around $235 million and net profit of around $170 million - both up 60% on FY25.
Commenting on today’s update, management told the market that the Communications business is expected to achieve revenue growth at the top end of the 15% to 20% range for the full year FY26, with defence-driven demand for software-defined radios underpinning growth in direct-to-consumer and command-and-control segments.
The Communications segment margin is now expected to hit 30% in FY26, ahead of its original FY27 target, compared with 26% in FY25.
Meanwhile, due to favourable gold price and recent successful product releases Minelab revenue in 2H FY26 to date is tracking ahead of the strong first-half performance.
Codan will release its FY26 full-year results on 20th August 2026.
The stock has risen around 133% over the past 12 months - vastly outperforming the S&P/ASX 200 Index - and today hit a 52-week high of $41.34.
While analysts recently raised price targets, with some targets now reaching $39.68 on average, the current price has already exceeded many previous estimates.
The most recent analyst rating on the stock is a Buy with a $38.50 price target.
Codan is trading at a high price-to-earnings (P/E) ratio, estimated around 50x in April 2026 - higher than its industry average – and suggests the shares are now overvalued.
Codan has a market cap of $6.6 billion; the share price is up 28% year to date.
While the stock’s 200-day moving average is trending upwards and highlights long-term investor interest in the stock, the 20-day moving average is falling as upward momentum wanes.
Consensus is Moderate Buy.
Cuscal flat after broker initiates coverage with Buy
Shares in Cuscal Ltd (ASX: CCL) gave up early gains to trade flat after broker Canaccord initiated coverage on the payments and regulated data services provider with a Buy recommendation and a $6 price target, which represents an 18% upside to the $4.88 it was trading at this morning.
The broker’s strong call on Cuscal today follows a major equity raising earlier this month – including a direct listing component - which signals to the market a strategic shift and highlight its growth ambitions.
The fully underwritten $30 million institutional placement - at $4.00 per share -strengthens the balance sheet, while maintaining a CET1 ratio of 18%–19%, well within the company’s target range.
What the broker also liked was the recent strategic acquisition of NZ-based Paymark Limited for $27 million Paymark.
It’s understood that Cuscal secured Paymark at an attractive valuation of approximately 5x FY27 net profit after tax.
In addition to providing Cuscal with immediate scale and a leading position in the NZ payments infrastructure market, the Paymark acquisition is expected to be mid-single digit EPS accretive in FY27.
It is also projected to deliver a mid-teens return on invested capital (ROIC) during the same period, with long-term expectations to exceed 25% once the $21 million "Switch" technology upgrade is finished by FY30.
The recent Paymark acquisition follows the acquisition of Brisbane-based rival Indue for $75 million (completed in December 2025) - a high-integration play designed to drive value through cost savings.
By removing duplicate corporate overheads, maintenance, and compliance costs, Cuscal expects $15–$20 million in post-tax annual cost synergies, fully realised by FY29.
The stock has seen a sharp rally, rising around 16% in mid-April 2026 following the Paymark transaction milestone.
At its current price, it trades at a price-to-earnings (P/E) ratio of approximately 25.1x, which is a premium to the broader diversified financials sector, however, analysts justify this premium due to Cuscal's high forecast EPS growth of 23.6% over the coming years.
Cuscal typically targets a pay-out ratio of approximately 50% of its underlying net profit after tax.
Given that Cuscal is an infrastructure-heavy business with high fixed costs, its ability to grow dividends is highly tied to transaction volume growth, which was up 9% in the most recent half-year report.
To the uninitiated, Cuscal is the only company outside the major banks with an end-to-end system connecting to every payment rail, to process any payment type.
It allows the likes of Bendigo and Adelaide Bank, ING or Square to process credit and debit cards, real-time payments or cash withdrawals from ATMs.
Cuscal has a market cap of $969 million; the share price is up 94% in one year.
The stock appears to be in a strong bullish trend confirmed by multiple indicators.
Consensus is Strong Buy.
oOh!media soars on takeover bid
Shares in oOh!media (ASX: OML) were trading 36.7% higher after the outdoor advertising company received an unsolicited, non-binding takeover offer from private equity firm Pacific Equity Partners (PEP).
PEP’s offer to acquire 100% of oOh!Media at $1.40 per share values the company at around $754 million.
The offer also represents a 50% premium to the company’s one-month volume-weighted average price.
In response to today’s offer, management told the market it is considering and evaluating the proposal and will update shareholders in due course.
Given that the share price today ($1.155) is still trading well under the $140 offer, the market is clearly signalling strong execution risk.
Today’s out-of-the-blue offer comes as welcome relief for shareholders who have witnessed the share price tumble 23% over one year.
Meanwhile, the company is currently in the midst of a chair transition, while CEO James Taylor has only been in the top job for around five months.
Since becoming CEO, Taylor has been navigating uncertainty after losing the Auckland Transport contract, which represented about 4% of revenue in FY24.
For the 2025 calendar year, the company reported a 9% lift in revenue to $691.4 million, while underlying EBITDA came in at $139.1 million.
While Morgan Stanley has a $1.55 per share price target on oOh!media, the broker noted that competition for advertising dollars has “never been more competitive” against major digital platforms, including Google and Meta.
oOh!media has a market cap of $616 million; the share price is up 29% in the last month.
Investor sentiment has been weak, resulting in a bearish sloping 200-day moving average.
Consensus is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
