Azzet reports on three stocks with price moving updates today.
Technology One rallies on upgraded guidance ~
Shares in TechnologyOne (ASX: TNE) were up 5.4% by 2:20 pm AEDT (3:20 am GMT) after the Australia's largest ERP SaaS company increased its full-year guidance by 5 percentage points, targeting 18% to 20% profit before tax (PBT) growth and 16% to 18% annual recurring revenue (ARR) growth, up from earlier guidance of 13-17%.
The Brisbane-based company, which makes software for universities and local councils, attributed today’s upgraded outlook to strong demand for its SaaS+ products and AI-driven offerings.
Today’s upgrade comes as a welcome relief for long-suffering shareholders who have watched the share price shed around half its value from around $40 mid-October to $20.17 mid-February.
Despite reporting record profits and revenue, the market reacted sharply to a slight miss in Annual Recurring Revenue (ARR) growth expectations and a lack of specific FY26 guidance.
While the market has always been frustrated by TechnologyOne’s lack of specific guidance, management has typically been reluctant to guide up unless it can see it in the numbers.
Putting paid to that uncertainty, CEO Ed Chung told the market today that recent investments in AI and international expansion are setting up the business for sustained profit and revenue growth.
Growth is expected to be back-weighted, with a strong second half anticipated.
“This increased guidance is not optimism – it is confidence in our customer pipeline in Australia, New Zealand and the UK,” Chung said.
“Driving this growth is the momentum of SaaS+, the response to Plus and our excitement in new AI products that will shortly be launched.”
Other key highlights announced today:
- Significant investment of $8–$9 million in AI Showcase events for H1 FY26.
- First-half FY26 PBT growth expected in the high single digits due to phasing of investments.
- Retirement of non-executive director Clifford Rosenberg after 7 years of service.
Management told the market to expect more updates on product launches and new customer wins in FY26, as the company looks to capitalise on rising demand for cloud-based ERP solutions.
While recent share price weakness has created a more compelling entry point, analysts remain divided on whether the stock is undervalued.
Traditional valuation models like Discounted Cash Flow (DCF) suggest significant undervaluation with a fair value around $34.87, around 39% upside from the current price of $23.62.
Based on the 6 brokers covering the stock, as reported by FN Arena, TechnologyOne is currently trading at a 54% discount to a target price of $33.44.
Hansen Technologies climbs on H1 update
Shares in Hansen Technologies (ASX: HSN) were trading 10.2% higher after the software and services provider to the Energy & Utilities and Communications & Media industries posted a 46% jump in underlying earnings for the half-year ended December 31 at $55 million.
Management also guided the market to expect second-half revenue to exceed first-half levels.
Due to recurring revenue growth, tighter cost control and higher operating leverage, revenue was up 7.3% to $191 million, while underlying profit soared 389% to $22.5 million.
Net cash from operations jumped 418% to $53.6 million, while support and maintenance revenue increased 15.6% on multi-year renewals and low churn.
The company is now targeting an underlying earnings of around 30% for FY26, with medium-term organic revenue growth of 5% to 7%.
Other key numbers announced today:
- Communications and media segment grew 13.5%, aided by new contracts and renewals with major operators.
- Energy and utilities revenue increased 3%, supported by smart-metering and digital infrastructure projects.
- The company posted an interim dividend of 5.0 cents per share, partially franked to 4.0 cents per share.
While the stock’s share price started to unravel late September, falling from $6.49 to $4.40 yesterday, what the market appears to have found favour with are signals that capex and reinvestment are being better managed.
One of the primary investment levers appears to be capitalised development costs, and much of this relates to funding the build-out of the SaaS platform.
Margin improvement also points to more efficient reinvestment.
Management told the market that the acquisition of Digitalk Group Holdings Limited on 31 December 2025, positions Hansen for increased revenue in 2H26 vs 1H26.
While the second half run rate looks set to improve, investors clearly want to see this converting into recurring revenue and cash.
Commenting on today’s update, Hansen’s global CEO Andrew Hansen told the market that the successful integration of acquisitions and continued innovation have set the company up to capture new opportunities globally.
Looking forward, sector tailwinds, including smart-grid upgrades, decarbonisation, digitalisation, 5G expansion, and AI-enabled operations, continue to expand Hansen’s global addressable market.
With a strong recurring revenue base, disciplined execution, a deep AI defensive moat and scalable platforms across two essential service industries, Hansen claims to be well-positioned to deliver sustainable growth and long-term shareholder value.
Hansen Technologies has a market cap of $1 billion; the share price is down 11% in one year and up 9% in one week.
The stock’s shares appear to be in a long-term bearish trend, confirmed by multiple indicators.
Long-term, the 200-day moving average is falling and shows that demand for this stock is low.
Consensus is Moderate Buy.
Superloop jumps on acquisition and H1 result
Long-suffering Superloop (ASX: SLC) shareholders received some welcome relief today – following a slump in the share price since last October - with the telco and internet service provider trading 16.3% higher this afternoon after announcing its 1H FY26 result and an acquisition, with the market giving both the immediate thumbs up.
To expand its fibre networks and upgrade its underlying earnings, Superloop is acquiring Victoria’s Lightning Broadband for $165 million.
Currently owned by Lynham Networks, Lightning Broadband – which operates a wholesale broadband network and also provides retail services to consumers – is expected to position Superloop as a leading national fibre-to-the-premises challenger.
Adding around 54,000 secured lots across six states to its portfolio will give Superloop a combined footprint of 170,000 lots.
As part of plans expand its “smart communities” business - which involves providing internet services to student housing, hospitals and hotels – the acquisition will be funded by cash and debt.
Commenting on today’s update, CEO Paul Tyler told the market that the acquisition is a critical step in its plans to build a Smart Communities asset base with significant scale and value.
Coinciding with the acquisition update, Superloop’s 1H FY26 included record organic consumer customer growth, an increase in revenue of 23%, and an increase of 46% in Underlying earnings to $55.8 million, leading to net profit after tax of $5.1 million for the half.
Both the consumer segment and the wholesale segment achieved strong revenue growth, 29% and 28%, respectively.
While Consumer added a record 49,000 customers during the half, Wholesale experienced accelerated growth in the last two months, setting the business up for a strong second half.
Due to new customer numbers and strong market share gains, Superloop has upgraded FY26 guidance to Underlying earnings of $112m-$120 million (21%-30% growth on FY25) versus previous guidance of $109-$117 million.
Group highlights included:
- Total revenue $317.6 million (+23%), driven by strong customer and market share gains in Consumer and Wholesale.
- Underlying earnings of $55.8 million (+46%), reflecting significant operating leverage with digital and AI investments underpinning operating cost control.
- Gross Operating Cash Flow $53.5 million (+43%), with an Underlying EBITDA cash conversion rate of 96%.
- Continuing gains in nbn market share (+1.5%) to 7.05.
- Refinancing completed with new $300 million facility.
Superloop has a market cap of $1.2 billion.
The stock’s shares are in a downtrend confirmed by multiple indicators.
Consensus is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
