Azzet reports on three stocks with price moving updates today.
Zip tanks on patchy Q1 FY26 update ~
Shareholders in beleaguered BNPL operator Zip Co (ASX: ZIP) woke up to more bad news this morning, with a further 38.3% routing by 2:40 pm AEDT (3:40 am GMT), resulting in a 64.4% share price fall since early October last year.
While the decision by many investors to lock in gains - following the Q1 FY26 update on 20 October 2025 – seemed to ignite a share price spiral, today’s 1H FY26 half-year result has clearly consolidated concerns that have been plaguing the stock for some time.
What appears to have irked the market this morning were revelations that, despite some robust underlying numbers, revenue margin slipped slightly to 7.9%, net bad debts edged up to 1.7% of total transaction volume (TTV), while TTV growth in the U.S. undershot broker expectations.
Investors have also been left to make sense of plans by CEO Cynthia Scott to relocate to America, while a potential U.S. dual listing remains subject to market conditions.
At face value, the numbers reported today suggest that the stock has been seriously oversold; after all, Zip upgraded its FY26 guidance for operating margin and cash EBTDA as a % of TTV.
Zip also reiterated FY26 guidance, expecting U.S. TTV growth above 40%, a group revenue margin around 8%, and an operating margin above 18%.
Even by Morningstar’s reckoning – which is typically conservative – Zip is significantly undervalued, based on its fair value of $3.21.
Today, the company reported record cash earnings of $124.3 million - up 85.6% - after launching a “pay-in-2” instalment payment product in the United States to broaden BNPL credit to non-discretionary spending such as groceries and utilities.
Due to strong U.S. performance – which accounts for over 80% of divisional cash earnings – TTV reached $8.4 billion, up 34%.
Active customers also rose 4.1% to 6.6 million, with U.S. users up nearly 10%.
Zip also told the market that $8.4 billion of transactions went through its systems in the six months to December, up 34.1% compared to the previous first-half.
Commenting on today’s update, Scott also told the market that momentum accelerated across both markets, underpinned by continued strategy execution, deeper customer engagement, strong holiday trading and expanded channel partnerships.
“We continue to execute strongly on our US growth opportunity, with TTV and revenue up 44.2% and 46.4% respectively (in USD), with active customers up 9.7% (407k) year on year,” she said.
“In ANZ, we delivered a 138.0% year-on-year increase in cash earnings, supported by revenue and Australian receivables returning to growth with continued adoption of Zip Plus.”
Zip Co Limited has a market cap of $2.3 billion; the share price is down 29% in one year and down 41% in the last month.
The stock’s shares appear to be in a near-term downtrend, confirmed by its 20-day moving average.
Consensus is Strong Buy.
Lovisa Holdings plunges on mixed 1H result
Shares in Lovisa Holdings (ASX: LOV) were trading 12% lower after the one-time ASX retail darling signalled underlying challenges within what was a reasonable 1H FY26 result.
Investors appear to have been more fixated on management’s admission that global economic conditions remain soft – especially with ongoing inflation and interest rate pressures – than the fashion jeweller’s 23.3% jump in revenue to $500.7 million and interim dividend of 53.0 cents per share.
What also spooked investors was the ongoing investment in the poorly performing UK subsidiary, Jewells, which incurred an earnings loss of $10.8 million and an NPAT loss of $11.2 million for the period.
The market clearly has grave doubts as to whether the Jewells concept will fly in the UK.
Over the half, statutory profit after tax rose 2.6% to $58.4 million.
The company saw comparable store sales rise 2.2% compared to the prior half.
During the half, Lovisa continued its global store rollout, opening 85 new stores across all regions - while closing 21 – bringing its total network to 1,095 stores.
Commenting on today’s update, global CEO John Cheston reminded the market that Lovisa has once again been able to deliver strong growth in the underlying global Lovisa business.
“… with the highlight another exceptional Gross Margin performance and the continued momentum in the store rollout through the period,” he said.
Other key numbers announced today include:
- Lovisa Underlying Gross Margin 82.9%, up 50bps.
- Reported earnings of $98.3 million.
- Underlying earnings $109.1 million, up 20.4%.
- Underlying Net Profit After Tax up 21.5% to $69.6 million.
- Operating cash flow of $183.8 million, up 30.3%.
Meanwhile, trading for the first 7 weeks of the second half saw total sales for this period up 21.5% on the same period in FY25, with comparable store sales up 1.6%.
The group remains focussed on opportunities for expanding both its physical and digital store network and expects the store rollout momentum to continue.
The stock’s balance sheet remains strong with available cash and debt facilities supporting continued investment in growth.
Lovisa has a market cap of $3 billion; the share price is down 8% in one year and down 15% in the last week.
The stock’s shares appear to be in a near-term uptrend, confirmed by its 20-day moving average.
Consensus is Moderate Buy.
Codan’s 1H result gets market’s cold shoulder
Following a recent period of extreme "exuberance” dished out to Codan (ASX: CDA), the market had a distinctly muted response to the defence and technology stock’s record-breaking first-half FY26 results - with the share price struggling to stay in positive territory this afternoon.
Given that the share price had already retreated 14% from January 2026 all-time highs, the market’s reaction to today’s update was by no means unexpected.
Following concerns that the stock had "overshot" its fair value, market sentiment on the stock has shifted to a Sell or Hold from the former buy.
However, there’s lots to like about today’s result, with earnings up 52% to $99.8 million, and net profit jumping 55% to $71.2 million, while earnings per share climbed 54% to 39.2 cents.
The company also declared an interim dividend of 19.5¢, fully franked, up 56%.
Commenting on today’s result, CEO Alf Ianniello told the market that the group’s performance reflects disciplined execution of our strategic plan, favourable market conditions in key regions, and the benefits of our diversified technology portfolio.
“Our Communications segment continues to deliver high-quality growth at the top end of our FY26 target range, while Metal Detection delivered exceptional performance, driven by gold detector demand in Africa and continued momentum across rest-of-world markets,” he said.
“These results reinforce Codan’s strategy of building a stronger, more diversified earnings base while investing for long-term growth.”
Key milestones within today’s update include:
Communications division experienced revenue growth of 19% to $221.8 million and maintained profit margins despite some temporary headwinds in the Zetron Americas business.
Metal Detection (Minelab) business delivered a standout half, with revenue up 46% and segment profit up 86% thanks to gold detector demand in West Africa and robust sales globally.
Codan's balance sheet remains healthy, with net debt at $88.2 million and significant undrawn facilities providing flexibility for future acquisitions and investment.
Group revenue increased 29% compared to the previous period.
Supported by strong underlying demand and the full-year contribution from Kägwerks, management expects the Communications division to deliver FY26 revenue growth within a 15 to 20% target range.
Meanwhile, Minelab revenue is tracking in line with strong first-half performance.
Accompanying today’s update was the announced retirement of Codan’s CFO and company secretary, Michael Barton, on 31 August 2026.
Kayi Li, who is currently Codan’s Deputy CFO, will succeed Barton as CFO, while Daniel Widera, who is currently Codan’s general counsel and joint company secretary, will become Codan’s sole company secretary upon Barton’s retirement.
Codan has a market cap of $6.3 billion; the share price has doubled in the last year and is down 6% in the last month.
Despite the near term weakness the stock is showing, it appears to be in a long term uptrend, confirmed by multiple indicators.
Consensus is Hold.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
