This ASX tech share was the best share in the technology sector last year.
Codan Ltd (ASX: CDA) soared 76.5% in 2025. But in the past month, the shine has dulled as the tech stock lost 6% in value.
After rocketing to a fresh all-time high of $36.92 in early November, Codan's share price has stumbled. In just two months, the ASX tech share has shed 21.5% from its peak price.
Monday delivered another tiny dent, with Codan closing at $28.97, 0.2% lower on the day.
Tech, but not as you know it
Codan isn't your typical ASX tech play. Based in Adelaide, the company runs a two-engine business spanning communications and metal detection. It's an unusual mix that gives it exposure to both defence budgets and goldfields.
That blend is increasingly working in its favour.
The communications division has emerged as Codan's growth powerhouse, designing and manufacturing mission-critical communications systems, drones, and defence and public safety equipment.
As defence spending rises globally, the ASX tech share is shifting away from the boom-and-bust cycles that come with gold prospecting.
Meanwhile, its Minelab brand — acquired nearly two decades ago — remains a global leader in metal detection. Codan's products are used everywhere from weekend gold hunters to humanitarian demining operations and security agencies.
Gold, growth and a dream run
The ASX tech share was on fire in 2025, with the stock up over 76%, including a blistering 20% surge in October alone.
The numbers backed it up. In FY25, group revenue jumped 22%, EBIT climbed 28%, and net profit after tax (NPAT) rose 27%. Communications stole the show, delivering 26% revenue growth and a 34% lift in profits.
Gold has also played its part. Prices surged to a new record, turbocharging demand for Minelab detectors — particularly across Africa.
Valuation reality check
So why the sudden wobble?
Valuation looks to be the culprit. After such a blistering run, investors appear to be locking in profits, and analysts are warning that much of the good news may already be priced in, with market watchers' recommendations being neutral.
Broker sentiment has cooled significantly in the past few months. Many now see the ASX tech share trading closer to fair value than it did months earlier. The average 12-month broker price target is $34.59, suggesting a 19% upside from the current share price.
Petra Capital has a hold rating on Codan with a 12-month share price target of $32.70.
Canaccord Genuity is the most upbeat broker. It seems to think that Codan's long-term story is intact and has a buy rating with a $37.54 target, which implies a 29% upside.
