The oil and gas sector has certainly been volatile with the conflict in the Middle East.

In this environment, it can be useful to defer to the experts, with Macquarie recently releasing two new research reports: one on an oil and gas junior and one on a major company.

Let’s see who they like.

Strike Energy Ltd (ASX: STX)

Strike shares have returned exactly 0% over the past 12 months, but the Macquarie analysts believe that’s about to change.

Key to this is an agreement Strike recently made with Gina Rinehart’s Hancock Energy to process the gas from its West Erregulla project through Hancock’s Belisama facility.

The deal also included a $30 million loan from Hancock, which Strike will use to support its share of pre-development activities.

The West Erregulla joint venture is targeting a final investment decision in FY28, with first gas expected in CY29.

Macquarie said the deal was “a key turning point”, materially improving the development pathway for the project.

The broker said:

In our view, this was particularly important given Walyering’s limited life (we forecast production to end Dec-28 quarter for now) – with West Erregulla targeted online mid-CY29. The market seems to be under-appreciating the significance of this for now & it may take some time for institutional interest to return to STX.

Macquarie said that with the Hancock money and debt funding from Macquarie Bank, the company was adequately funded.

The broker has a price target of 15 cents on Strike shares compared to 11 cents currently.

Santos Ltd (ASX: STO)

Santos shares have performed well over the past year, up 24.4%, but the team at Macquarie thinks they have further to run.

The broker’s analysts said in their research note on the company that the third quarter will be a “watershed” period as Santos moves into the harvest phase after a long period of investment.

They added that the strong commodity pricing environment was providing a favourable earnings backdrop, with the disruption in the Middle East continuing.

Macquarie is forecasting earnings per share to be 40% higher for the calendar year, driven by higher realised prices and increased LNG shipments; however, they noted that their estimate was 31% above consensus.

Macquarie has an outperform rating on Santos shares and a price target of $9.35 compared to $8.58 currently.

Conversely, Macquarie has a neutral rating on Woodside Energy Group Ltd (ASX: WDS) and a price target of $32.40 compared to $31.77.

Santos is valued at $27.8 billion.

The post 2 ASX energy companies Macquarie says will outperform appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Santos vs Viva Energy: Which ASX energy stock gets my vote today?
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Codan Ltd (ASX: CDA) share price is on watch today, after the company posted a sharp boost in first-half profit and revenues, with the Communications segment delivering record results.

What did Codan report?

• Communications H1 FY27 revenue expected between $400 million and $410 million (up from $221.8 million in pcp)
• Group NPAT for H1 FY27 expected to be at least $160 million (vs. $71.2 million in pcp)
• EBIT margin for Communications segment estimated at 40% (up from 26% in pcp)
• Metal Detection (Minelab) tracking slightly above H2 FY26 revenue levels
• Strong demand from conflict regions, projected to represent 50% of Communications segment revenue

What else do investors need to know?

Demand for Codan’s Communications solutions has surged, particularly in conflict regions where its technology is trusted for reliability. The spike in this segment has led to significant operating leverage, pushing margins higher and contributing to a substantial jump in profit.

On the metal detection side, Minelab saw solid demand thanks to new product launches and robust gold prices, with revenue pacing ahead of recent periods. Across the company, Codan continues monitoring supply chain risks as incoming orders remain strong.

What’s next for Codan?

Looking ahead, Codan is targeting Communications segment revenue growth of 30–40% for full-year FY27, though management notes limited visibility for conflict region demand beyond the short term. The company will keep focusing on supply chain resilience and scaling up production as required.

While strong order momentum may persist, Codan remains cautious about forecasting second-half results, especially for its Communications business, due to the unpredictable nature of orders from conflict areas.

Codan share price snapshot

Over the past 12 months, Codan shares have risen 76%, outperforming the S&P/ASX 200 Index (ASX: XJO).

View Original Announcement

The post Codan trading update: Record H1 FY27 profit and revenue appeared first on The Motley Fool Australia.

More reading

• Codan vs Megaport: Which ASX Tech Stock Has More Upside?
• 2 ASX 200 shares just upgraded to buy ratings
• 5 things to watch on the ASX 200 on Monday
• This ASX 200 share hit an all-time high yesterday. Is the sky the limit?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Codan vs Megaport shares: two ASX techs full of surprises

Everyday investors are always on the lookout for Aussie tech names with serious growth potential, and right now, Codan Ltd (ASX: CDA) and Megaport Ltd (ASX: MP1) are two of the most talked-about options. Both operate at the leading edge of technology but take quite different approaches, serving a wide range of customers and end markets. Here’s a breakdown of Codan vs Megaport shares and what I make of their prospects.

The case for Codan

Codan Ltd is an Australian technology powerhouse that designs and manufactures electronic solutions for government, defence, mining, and consumer markets worldwide. With businesses spanning communication systems, metal detection, and mining tech (including Codan Communications, Minelab, Minetec, and Defence Electronics), Codan’s reach is truly global. It manages its own product design and has manufacturing facilities not just in Adelaide but also in Malaysia — as well as sales or support offices across North America, Europe, and the Middle East. According to its company profile, most of its revenue actually comes from North America.

A few standout fundamentals:

• Codan’s market cap is a hefty $9.53 billion, which puts it in the ASX tech heavyweight ranks.
• Its shares are up a thumping 85.5% year-to-date, showing the kind of momentum most investors dream about.
• The company’s dividend history shows a steady (and fully franked) stream of payouts, with a current yield of 0.93% and 100% franking on recent payments — appealing for those wanting some income.
• Codan’s P/E is 54.48, and it reported earnings per share of 0.959. While high, this sort of multiple appears more common among well-loved tech names with rapid growth expectations.

The case for Megaport

Megaport is a star of Australia’s next-gen tech scene, providing a network-as-a-service (NaaS) and cloud connectivity platform. Its software allows customers around the globe to instantly connect across more than 1,100 data centres in over 30 countries, linking directly to the likes of Amazon Web Services, Microsoft Azure, and Google Cloud Platform. In late 2025, Megaport announced a significant expansion into AI compute infrastructure via its acquisition of Latitude.sh, bringing on-demand GPU cloud services under its belt. Its business covers the Americas, Asia-Pacific, EMEA, and now a growing Compute division that pushes into the frontier of AI infrastructure.

Megaport’s key stats in this snapshot:

• A market cap of $4.67 billion makes it a tech mid-cap by ASX standards.
• Year-to-date, Megaport shares have surged 66.9% — a stellar run, even if not quite as meteoric as Codan this year.
• Megaport does not currently pay dividends and its dividend yield is 0.00%, suggesting it’s ploughing all cash into growth.
• Its P/E ratio is an eye-watering 370.00, and its reported EPS is -0.218. (Note: Megaport’s reported P/E ratio may be based on a different earnings measure, such as underlying or forward EPS, than the figure shown here, which is why these numbers might look inconsistent.)

Valuation comparison

The numbers underline just how differently the market views these two tech players:

Metric	Codan	Megaport
Market Cap	$9.53 billion	$4.67 billion
P/E Ratio	54.48	370.00
Dividend Yield	0.93% (100% franked)	0.00%
Earnings Per Share	0.959	-0.218
YTD Return	85.5%	66.9%

Codan’s P/E ratio is high, but compared to Megaport’s eyewatering 370, it appears much more grounded. It’s also delivering consistent profits and dividends, unlike Megaport, which is still reporting negative earnings per share. The huge difference in dividend yield — with Codan offering fully franked dividends and Megaport offering none — might sway investors who prefer some cash returns.

Recent share price performance

Comparing both companies’ share price movements as of 25 September 2026:

• Codan Ltd closed at $52.25, down 0.97% for the day, after a remarkable year powered by an 85.5% year-to-date return.
• Megaport Ltd closed at $19.62, flat for the day, and has delivered a 66.9% year-to-date return.

Both companies have been on strong upward trends, but Codan enjoyed more pronounced positive momentum recently.

Which is the better buy?

So, which one has more upside? For my money, I think Codan gets the edge right now. Both companies have delivered cracking returns in 2026, but Codan’s profits, global reach, and verified track record of paying (and growing) fully franked dividends make it stand out. While Megaport is exciting and at the forefront of cloud and AI, the P/E multiple is extremely stretched, especially considering it’s still loss-making on a reported basis.

That’s not to say Megaport isn’t a great business — it is, and its expansion into AI compute could pay off over time. But if I’m choosing today between Codan and Megaport, I’d lean toward Codan as the tech stock with more upside, given the sharp run in earnings, dividends, and a valuation that’s elevated but not as extreme as Megaport’s.

The post Codan vs Megaport: Which ASX Tech Stock Has More Upside? appeared first on The Motley Fool Australia.

More reading

• Megaport lifts FY27 outlook after landing $1B in new AI infrastructure deals
• Codan trading update: Record H1 FY27 profit and revenue
• 2 ASX 200 shares just upgraded to buy ratings
• 5 things to watch on the ASX 200 on Monday
• This ASX 200 share hit an all-time high yesterday. Is the sky the limit?

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.