Judo Capital (ASX:JDO) has seen its shares rise following a positive assessment from E&P analyst Olivier Coulon regarding its 2025 financial results. Coulon noted that a cost-led beat contributed to pre-impairment profit exceeding consensus estimates by approximately 2 per cent. Shares in Judo were up 5.4 per cent to $1.84 at 11.37am AEST. Judo Capital is a bank focused on providing financing to small and medium-sized businesses in Australia. The company aims to offer relationship-based banking services.
While higher net interest margins were offset by lower average lending, and a slightly increased cost of risk impacted net profit, Coulon pointed out that the mid-point of the profit before tax (PBT) guidance for the 2026 financial year is broadly in line with consensus expectations, indicating stable growth prospects. This suggests that the market anticipates Judo to maintain its current trajectory.
Coulon further commented that Judo’s current trading multiples, with a financial year 2026 price-to-earnings (PE) ratio of 15.5x and 1.2x net tangible assets (NTA), provide substantial valuation support for the stock. However, he added that the increased cost of risk guidance may lead to inquiries during the upcoming investor call, as investors seek further clarification on the potential implications for future performance.
