Author: openjargon

Normally, I don’t like buying ASX shares that are up 40% in six months. As a value investor at heart, I try (with varying degrees of success) to follow Warren Buffett’s playbook of buying high-quality companies at cheap prices.

However, I can make exceptions. And I am seriously considering making one when it comes to the L1 Global Llog Short Fund Ltd (ASX: GLS).

The L1 Global Long Short Fund is a listed investment company (LIC) that has quite an interesting history. In fact, not too long ago, it had a different name and a different manager. Yep, the L1 Global Fund was formerly known as Platinum Capital Ltd. However, the manager of this LIC had been struggling for a number of years, and decided to accept a takeover offer from L1 Group Ltd (ASX: L1G). Upon the completion of this takeover, the L1 Global Long Short Fund was born.

L1 was already famous for its L1 Long Short Fund (ASX: LSF) LIC, which, despite a rocky start, has gone on to become one of the ASX’s best-performing managed investments. That fund has an ASX-focused mandate, though. L1 wanted to build a fund that was unconstrained in its scope, and we have it here on the ASX today with the L1 Global Log Short Fund.

Like its locally-focused Long Short Fund, the L1 Global Fund employs both traditional ‘long’ investing alongside short-selling in order to make returns. This makes it quite unique on the ASX, which only has a handful of funds that employ both strategies. Whilst risky, using both can enable this LIC to profit in both bull and bear markets.

Is this ASX share a no-brainer buy in 2026?

Now, the L1 Global Long Short Fundhas several traits that would normally put me off buying it. For one, it uses short-selling, which is a tactic I don’t usually like to see in my investments. For another, it charges a steep management fee of 1.44% per annum (plus a performance fee).

However, I can’t ignore the numbers. As we covered a few months ago, L1’s team trialled the strategy that it now uses for the Global Long Short Fund. This trial saw L1 record a return of 67.5% between January and October. Since the start of October, this LIC has risen by almost 35%.

If this breakneck performance can be maintained over a number of years and all economic and market cycles, it could mean L1 Global Long Short Fund is one of the best shares on the ASX.

So I’ll be keeping a close eye on this investment. If management keeps making the right calls, I might have to buy some shares of my own.

The post This ASX share is up 40% in 6 months and I want to buy it appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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.

The S&P/ASX 200 Index (ASX: XJO) bank share Bendigo and Adelaide Bank Ltd (ASX: BEN) recently reported its results, which actually beat what market analysts were expecting in terms of profit.

However, broker UBS thought the report was a “mixed result”, with the group net interest margin (NIM) improving by 4 basis points (0.04%) half over half to 1.92% thanks to an improving deposit base and asset mix.

However, lending was down 1.9% half over half with weakness in residential and agri-related loans. But at the same time, costs increased by 4.2% half over half, despite investment spending down by 12% half over half.

What did UBS think of the result?

UBS noted that the bank has focused on expanding its proprietary channels, while improvements in funding costs and mix supported the NIM.

The broker said the result was “disappointing” on lending growth, though it increased its expectation for cash earnings per share (EPS) for FY26 due to a lower-than-expected credit provision. It also reduced the cash EPS expectation for FY27 by 2.9% and cut the FY28 EPS forecast by 0.2%. This reflected UBS’ views on the ASX 200 bank share’s loan book growth and costs, with this offset somewhat by reduced credit charges.

UBS also highlighted that costs related to anti-money laundering and counter-terrorism financing (AML/CTF) led to the Bendigo Bank share price falling 2% on the day.

The broker wrote:

Looking ahead, the bank aims to align lending growth more closely with system growth, though this strategy may exert pressure on margins. We revise our projections for BEN to reflect the reduced loan growth and updated cost estimates related to the $70-90M program aimed at addressing AML/CFT compliance issues. Additionally, we slightly increase our NIM assumptions, taking into account BEN’s growth targets for 2H 26, which are balanced by enhancements in their liability structure and anticipated cash rate hikes.

Expert rating on the Bendigo Bank share price

UBS thinks the ASX 200 bank share could make EPS of 82 cents in FY26, 75 cents in FY27, and 80 cents in FY28. That would put the business at less than 14x FY26’s estimated earnings.

The broker has a neutral rating on the ASX 200 bank share, with a price target of $11.20. A price target is where analysts expect the business to trade in 12 months from the time of the investment call. Therefore, UBS suggests the business could slightly decline from where it is today.

UBS suggested that the business is trading above its long-term price-earnings (P/E) ratio average.

The post Is this ASX 200 bank share a buy after its recent result? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Pro Medicus Ltd (ASX: PME) share price is bouncing back on Tuesday.

At the time of writing, the health imaging software company’s shares are up 7.90% to $126.21. The rebound comes after a bruising sell-off that saw the stock fall to $113.67 on Monday, its lowest level in almost 2 years.

Even with today’s lift, Pro Medicus shares remain down roughly 43% in 2026 to date.

A sharp rebound after heavy selling

The move higher follows a significant pullback over the past week.

Pro Medicus shares fell more than 20% after the company released its half-year results, triggering one of the largest single-week declines in recent years.

For the six months ended 31 December, Pro Medicus reported revenue of $124.8 million, up 28.4%, and underlying profit before tax of $90.7 million, up 29.7%. The company also delivered an underlying EBIT margin of 72.6% and declared a fully-franked interim dividend of 32 cents per share.

Statutory net profit after tax (NPAT) surged to $171.2 million, though that included unrealised gains from its investment in 4DMedical Ltd (ASX: 4DX)

Even with those results, the market marked the stock lower as investors adjusted expectations around future growth.

What drove the sell-off?

Ahead of the result, Pro Medicus shares had been trading at high levels compared with recent earnings.

Although the company delivered solid growth, the result did not materially change the near-term earnings outlook. Management noted that its largest implementation went live late in October, limiting its contribution to the period.

In the days that followed, the share price declined sharply. The move down to $113.67 earlier this week returned the stock to levels last seen in May 2024.

However, today’s rebound suggests some stabilisation after several sessions of continued heavy selling.

Time to chase the rebound?

The underlying business remains highly profitable and capital-light. It also has a strong balance sheet with minimal debt and continues to generate solid operating cash flow. Pro Medicus continues to secure large North American contracts and has more than $1 billion in contracted revenue over 5 years.

However, the broader price trend remains negative.

Even after today’s gain, the shares are still well below their previous trading range. One strong session is not enough to confirm a change in direction.

Investors will be watching to see how quickly recent contract wins flow through to reported earnings.

Despite the 43% fall this year, the share price will ultimately track profit growth. Execution over the next few reporting periods will be very important.

The post Pro Medicus shares rally off recent lows. Time to chase? appeared first on The Motley Fool Australia.

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

ASX gold stocks have enjoyed an enormous rally this year after the price of the precious metal soared to an all-time high late last month.

The rally, driven by a flood of investors fleeing to safe-haven assets amid concerns about global volatility, has been great news for gold miners and producers. In fact, a few have seen their share prices jump 100% or more over the past 12 months alone.

The surging ASX gold stocks

West African Resources Ltd (ASX: WAF) shares have soared 107.76% over the past year, to $3.62 a piece at the time of writing on Tuesday afternoon. The share price spiked to an all-time high in late January. And while the shares have since dropped 7.45%, they’re still 17.75% higher for the year to date.

West African Resources shares have rallied particularly strongly this year, boosted by the gold price and promising exportation results. 

It’s a very similar story for Vault Minerals Ltd (ASX: VAU). While its shares have also surged higher over the past 12 months (up 108.17% at the time of writing), they’re still 0.09% lower for the year-to-date.

Again, the miner’s shares have been boosted by the rallying gold price and by its strong gold production results posted last month. 

Perseus Mining Ltd (ASX: PRU) shares have also climbed 102.16% over the past 12 months. At the time of writing, the shares are trading at $5.62 each, a 0.35% year-to-date decline.

The miner also posted solid gold production and growing cash last month.

Can these ASX gold stocks keep climbing higher?

The price of gold has already hit record‑like levels this year and is expected to remain strong through 2026. Some think the price of gold could go even higher this year if demand for safe-haven assets surges further or volatility risk heightens.

If gold prices stay strong, then ASX gold stocks like West African Resources, Vault Minerals, and Perseus Mining could continue to outperform this year. 

The risk is that these companies are very reliant on gold prices, which means share price growth could be choppy throughout the year. 

Analysts currently have a strong buy rating on West African Resources shares and think the stock could surge another 77.53% this year to $6.40 a piece, at the time of writing.

Forecasts on Perseus Mining shares also imply a huge upside ahead. Most analysts (five out of nine) have a strong buy rating on the stock. The maximum target price is $8.36, which implies a potential 48.95% upside at the time of writing.

It’s the same story for Vault Minerals shares, too. Most analysts (eight out of 11) have a buy or strong buy rating on the shares. The maximum target price is $8.70, which implies a potential 59.19% upside for investors at the time of writing.

The post These 3 ASX gold stocks jumped 100% in a year. Is there more upside ahead? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

I love buying ASX exchange-traded funds (ETFs). But most of the ETFs that I’ve purchased for my ASX share portfolio have been of the simple, index fund variety. I rarely buy funds that cover a specific theme or sector. However, I am thinking about changing that up in 2026.

Some themes and sectors within the market are obviously cyclical. Commodities (and commodity ETFs) are a clear example. But others might be at the start, or perhaps middle, if we’re being honest, of a multi-year tailwind, with no visible impediments on the horizon. It’s these ASX ETFs that I would be most open to adding to my portfolio this year.

With that in mind, let’s discuss two ASX ETFs that I think fall into this bucket and are, therefore, looking like a buy at the start of 2026.

Two exotic ASX ETFs that I think are a buy for 2026 and beyond

First up, we have the BetaShares Global Cybersecurity ETF (ASX: HACK). This ETF does pretty much what it says on the tin – give ASX investors access to a global portfolio of companies who are all leaders in the cybersecurity space.

Every year, governments, businesses and individuals move more and more of their interactions to the internet. Whilst this might bring many benefits, it also brings vulnerabilities, which can be disastrous for everyone involved if they are exploited. As such, governments, businesses and individuals are increasingly willing to pay top dollar to protect themselves and their clients. That is a boon for every company within this ASX ETF.

We can see this in action with how HACK units have fared in recent years. As of 31 January, this ASX ETF has returned an average of 15.86% per annum since its inception in 2016.

Some of HACK’s top holdings include Cisco Systems, Palo Alto Networks, Broadcom and Cloudflare. This ETF charges a management fee of 0.67% per annum.

Investing in defence

Next, let’s discuss the Global X Defence Tech ETF (ASX: DTEC). It is an unfortunate reality that the global geopolitical environment has deteriorated in recent years. Many countries are decoupling from long-held alliances to individually manage threats in their region. Whilst this arguably makes the world a more dangerous and less predictable place, we must invest where the world is going, not where we wish it might go.

That’s why I think this ASX ETF is a compelling investment for our current time. DTEC invests in a portfolio of global companies that are all leaders in providing defence technology, weaponry and other goods and services of that nature. Although it only began ASX life in September of last year, DTEC units have already returned more than 67% since (as of 31 January).

Some of this ETF’s largest underlying positions include Lockheed Martin, RTX Corp, Rheinmetall and Palantir Technologies. The Global X Defence Tech ETF asks a management fee of 0.5% per annum.

The post I think these 2 exotic ASX ETFs are a buy in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 BetaShares Global Cybersecurity ETF, Cisco Systems, Cloudflare, Palantir Technologies, and RTX. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom, Lockheed Martin, Palo Alto Networks, and Rheinmetall. 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.

Horizon Minerals Ltd (ASX: HRZ) shares were placed in a trading halt on Tuesday while the company sought to lock in $175 million in new equity to fund its Western Australian gold ambitions.

The company said in a statement to the ASX that it had completed a scoping study for the Black Swan plant and mine plan near Kalgoorlie in the goldfields region of Western Australia.

Project looking good

The scoping study found that the project was an “attractive gold development opportunity with low capital intensity, utilising existing mining and Black Swan processing infrastructure”.

The project was expected to have an initial mine life of five years, producing an average of about 102,000 ounces of gold per year.

First gold was expected in mid-2027, with the mine processing about 2.2 million tonnes of ore per year.

The company said the mine plan contained 74% of its gold in the high-confidence measured and indicated status, with the remainder in the lower confidence inferred status.

The gold contained at the nearby Burbanks underground prospect was also not yet included in the mine plan, the company said.

The mine would cost $160.5 million to build, “including estimated plant refurbishment and conversion costs of $101.0 million, site establishment and infrastructure refurbishment costs of A$45.6 million and mine development costs of $13.8 million”.

The project was expected to have an all-in sustaining cost of about $3353 per ounce of gold, and a payback period of 18 months.

Horizon also said management believed there was potential upside from ongoing exploration drilling and the potential to “debottleneck” processing plans to boost ore throughput.

Horizon Managing Director Grant Haywood said the results were pleasing.

The study outcomes demonstrate the quality of our assets and show a robust economic case to support our vision of becoming a meaningful, independent WA gold producer. It’s the culmination of building our strong gold portfolio with some key strategic acquisitions over the last 18 months, with the hard work and dedication of our talented team delivering an outstanding result. Our initial plans of achieving a throughput of 1.5Mtpa through the Black Swan processing facility with a minimum 5 year life of mine plan have well and truly been met with the plant study having now being upscaled to its nameplate capacity of 2.2Mtpa, whilst remaining at a 5 year mine life and achieving our aspirational target of production of 100,000 ounces per annum.

New funding on the cards

The company’s capital raise, also announced on Tuesday, aims to raise $175 million by issuing new shares at $1.08 apiece, compared with the last trading price of $1.23.

Existing Horizon shareholders will be able to subscribe for a share of an extra $10 million at the same price.

Horizon Gold was valued at $253.8 million at the close of trade on Monday.

The post Why is this gold company raising a whopping $175 million? appeared first on The Motley Fool Australia.

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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 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.

The Praemium Ltd (ASX: PPS) share price is racing higher on Tuesday afternoon following a release from the company.

At the time of writing, the investment platform provider’s shares are up 15.67% to 77.5 cents. By comparison, the All Ordinaries Index (ASX: XAO) is 0.3% higher.

Despite the sharp move, the stock remains down around 2.5% in 2026 to date.

Here’s what the company announced.

Praemium outlines technology restructure

After market close on Monday, Praemium confirmed it will undertake a major organisational restructure focused on its technology division.

The move follows the acquisition of Tecknowledge Group Pty Ltd, known as Technotia Laboratories, last month. Management said the restructure will reshape the cost base and improve the performance and functionality of its technology platform.

As part of the changes, Praemium will reduce duplicate IT development, maintenance and infrastructure roles. The integration of Technotia’s capabilities is expected to enhance automation and overall system performance.

The company also confirmed it will close its longstanding software development operations in Armenia by the end of the 2026 financial year.

Management targets significant cost reductions

Praemium expects the restructure to deliver material cost reductions once implemented.

In Australia, headcount is anticipated to fall by around 15%, reducing direct staff salaries by approximately $9 million. In Armenia, further reductions of about 13% of the pre restructure base are expected, lowering direct staff salaries by around $3.5 million.

After including the Technotia team, Praemium expects its overall annual technology salary budget, excluding incentives, to decline by roughly $9 million on a run rate basis. That compares to its position before the acquisition.

Any savings in FY26 will be offset by one off redundancy costs estimated at approximately $3.3 million. Further details on operating cost and capital expenditure impacts are expected when the company reports its half-year results on 23 February 2026.

The company has faced pressure on margins in recent periods as it invested heavily in platform development and growth initiatives. Investors have been watching closely for signs that spending is being brought under tighter control without slowing product improvements.

Focus shifts to margin outlook

While restructures can create short term disruption, investors appear focused on the longer-term margin implications.

Praemium operates an integrated platform that provides custody and non-custody investment solutions to advisers and wealth managers. In its recent quarterly update, the company reported platform funds under administration of $32.5 billion, up 8% year-on-year.

With the share price under pressure in recent months, today’s update indicates management is focusing on cost control and margin stability.

The post This ASX tech stock is rocketing 15% today. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 Praemium. 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 gold mine developer is worth a look, according to the analyst team at Canaccord Genuity, with a large drilling campaign underway and funding all sewn up for its project in the African nation of Mali.

When it comes to mining companies that are in the development phase, “derisking” is what it’s all about, and according to the Canaccord team, Toubani Resources Ltd (ASX: TRE) is doing a good job of just that.

The company recently tied up a funding agreement to build its Kobada mine, with $242 million kicked via an existing shareholder, $26 million via the accelerated exercise of options from the same company, and $125 million via a multi-tranche placement at 40 cents per share.

Exploration continuing

The company also recently announced its largest drilling program to date at Kobada where it expects to drill 100,000m focused on expanding the current mineral resource.

The Canaccord team said they estimated that the funding lined up was enough to bring the Kobada project into production with an adequate working capital buffer.

They said that the company was well-placed with all the necessary approvals in place, “and recently announced the formalisation of the agreement with the Government of Mali which includes confirmation the project will be governed under the 2023 Mining Code and a capped government interest of 35%”.

They added:

With the approvals and financing secured, final investment decision is fait accompli, in our view. Construction is set to commence in 1H26 with all major contracts awarded and long lead items ordered. We forecast an 18-month construction period ahead of first production in 2H27

They said, given that Mali was a developing nation there was a “moderate to high” degree of “economic, political, social, legal and legislative risk”.

They added:

In August 2024, Mali adopted the 2023 Mining Code. Fiscal terms governing the project are subject to negotiation of a Mining Convention which is yet to be completed. There is a risk that negotiated fiscal terms may differ from our modelled assumptions and negatively impact our valuation.

Toubani’s definitive feasibility study, Canaccord said, was released in late 2024 and proposed a mine life of about 10 years.

Toubani shares were changing hands for 49 cents yesterday. Canaccord Genuity has a speculative buy rating on the stock and a 12-month price target of $1.70, which was increased from $1.50 previously.

The company was valued at $290.3 million at the close of trade on Monday.

The post This miner’s shares have more than tripled, but could triple again Canaccord Genuity says appeared first on The Motley Fool Australia.

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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 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.

The out of home storage market has boomed in recent years, but that boom has happened largely in private markets which are not open to ordinary retail investors.

So for those looking to park some money in the sector, Abacus Storage King Ltd (ASX: ASK) is pretty much the only option at the moment.

The company delivered its first half results this week and we’ve had a look at what the analysts are saying following that event.

But first let’s have a look at the results.

Solid set of numbers

Abacus on Monday said that it had a “solid” first half, “with embedded growth upside”.

The company delivered a statutory profit of $71.1 million, up 4.8% on the same half the previous year, and will pay an interim dividend of 3.1 cents per share, equal to that paid for the same period last year.

The company’s occupancy rate was 90.5%, down 20 basis points, while gearing of 31.9% was within the target range of 25-40%.

The company also reaffirmed its guidance for full year distributions of 6.2 cents per share.

On the outlook, managing director Steven Sewell said it was looking positive.

He added:

HY26 demonstrates the resilience of the business model and the strength of the operating platform, which is becoming stronger as we continue to advance our use and understanding of the revenue management system. As we continue to evaluate a potential internalisation of management, our focus remains on disciplined execution, strategic growth and operational excellence.

What do the brokers think?

The analysts at Bell Potter and Shaw and Partners both had a look at the result, and each are predicting some modest share price upside.

Bell Potter has a buy rating on the shares and a price target of $1.70 compared with $1.53 currently.

They added that further growth should be on the cards:

We continue to like ASK on a sector relative basis as the sole way to gain exposure to Australian self-storage and, per our recent initiation, there continues to be a disconnect between listed-market storage valuations and private markets. As Australia’s self-storage sector continues to mature and institutionalise we expect to see further valuation growth. We acknowledge the near term cost challenges impact ASK but are equally conscious of the multiple upside catalysts and pronounced valuation disconnect of this vehicle.

Shaw and Partners has a hold rating on the shares and price target of $1.65.

They said the business “remains vibrant” and the company had plenty of capacity for acquisitions and developments given its gearing ratio.

They added that there could be a modest uplift to the valuation should the company go ahead with internalising its management vehicle, Abacus Group (ASX: ABG).

The post Is Abacus Storage King a buy, sell or hold after its first half results? appeared first on The Motley Fool Australia.

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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 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.

Codan Ltd (ASX: CDA) shares are down 0.58% in Tuesday afternoon trade. At the time of writing the shares are changing hands at $34.06 a piece.

Today’s decline means the shares are now down 14% from an all-time high of $39.59 recorded in late-January. Although they’re still 17% higher for the year-to-date and 99% higher than this time last year.

Now the question is, what’s next? Is there more upside ahead or is this the beginning of a sharp sell-off?

What is pushing Codan shares lower?

Codan develops electronics solutions for government, military, corporate, and consumer markets globally. Based in Adelaide, it runs a dual-engine business spanning communications and metal detection. It’s a rare combo that gives it leverage to both defence budgets and goldfields.

Its communications segment designs communications systems, drones, and defence and public-safety equipment. Which means, the stock benefited from a strong price rally off the back of soaring demand for defence-related stocks.

At the same time, its metal detection business segment is also picking up pace. Its products are used by anyone from your local metal detectors who hunt for treasure in their space time to security agents and demining companies.

Earlier this year, Codan posted an impressive first-half FY26 trading update. The company said it expects revenue to jump 29% and net profit after tax to soar 52%. Investors were clearly thrilled with the update and rushed to buy shares.

But in late-January, after the shares spiked to an all-time high, the stock expected a price pullback. 

There hasn’t been any price sensitive news out of the company since its trading update. This implies the drop in share value is likely a combination of investors taking gains off the table after the strong rally earlier this year, and some softening in the gold price.

The price of gold also soared to an all-time high in late-January but has since dipped again after lower trading volumes dampened demand.

Are Codan shares a buy, hold or sell?

Sentiment about the outlook for Codan shares is mixed but TradingView data shows that the majority (four out of seven analysts) have a hold rating on the stock. 

However, after the latest share price decline there is a consensus view of upside ahead for the share price. At the time of writing the maximum target price for Codan shares this year is $42.31 a piece, which implies a 23.88% upside for investors. Even the average $39.01 target price implies the shares could gain 14.21% over the next 12 months.

Earlier this month fund managers at Wilson Asset Management (WAM) said they’re positive on the outlook for Codan shares, underpinned by defence sector and gold price tailwinds.

Codan is expected to post its half year results for FY26 later this week on 19 February.

The post Codan shares drop 14% from their peak: Here’s what to expect for the rest of 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.