4 ASX stocks upgraded to Buy following reporting season

It wouldn't be ASX reporting season without a series of high profile hits and misses. While some stocks are pummelled, others are pumped, yet both can create buying opportunities.

With Super Thursday now behind, how has the outlook changed post-results? Here are 4 ASX stocks that have been given new Buy ratings, whether its because of a better-than-expected result or a results-led sell off that analysts think has gone too far. 

ZIP Co (ASX: ZIP)

• Broker: Jeffries
• Rating: BUY (up from HOLD)
• Target: $4.20 (currently $1.71)

Financial services and BNPL provider Zip Co has arguably been the biggest casualty of the February reporting season so far.

Misses on revenue (up 29.2% to $658.1m but 1% below consensus), cash EBITDA (up 85.6% but 5% below expectations) and US customer growth saw ZIP crash 38% last week.

But analysts remain more optimistic than investors, with many maintaining Buy ratings, albeit with lower targets. Jeffries has upgraded its target from Hold to Buy, believing the results-led selloff was overdone and now presents a potential buying opportunity.

While it has lowered its price target to $4.20, at current prices that represents good upside potential. Analyst Roger Samuel conceded that Zip's long-term 8% margin target may be hard to maintain, but upgraded FY27-28 cash EBITDA forecasts and strong operating leverage were positives. 

Guzman y Gomez (ASX: GYG)

• Broker: UBS
• Rating: BUY (up from Neutral)
• Target: $21 (currently $19)

A mixed H1 result for the fast food chain did nothing to address Guzman y Gomez's slow share price decline, even as analysts see some green shoots in local growth.

While revenue was up 23% to $261.2 million, it missed estimates by 5%, and there was also a 17% miss on adjusted EBITDA, despite a 23% increase to $33 million.

In Australia, underlying EBITDA guidance was revised slightly higher to 6-6.2%, even as the US outlook remains uncertain. 

In its rerating, UBS cited the "very attractive" growth outlook in Australia, but also flagged the challenges facing its US pilot expansion amidst guidance of higher losses in FY26. 

While GYG has already rallied since its post-results sell-off, it remains below UBS's revised target of $21. The stock remains 34% below its trading debut in June 2024, and below its IPO price of $22. 

Perseus Mining (ASX: PRU)

• Broker: UBS
• Rating: BUY (up from Neutral)
• Target: $7.15 (currently $6.03)

African gold miner Perseus Mining has rallied hard off exploding gold prices, with a 9% improvement to cost guidance, a bolstered balance sheet and a 2% beat to interim dividend estimates the positive benefits. 

Despite flirting near all-time highs, UBS has upgraded PRU to a Buy and revised its price target marginally higher to $7.15. It cites a 73% increase in reserves at Perseus's Nyanzaga mine, which should add 5 years of mine life, with the mine still on track for its first gold pour in 1Q CY27. 

QBE Insurance Group (ASX: QBE)

• Broker: Ord Minnett
• Rating: BUY (up from HOLD)
• Target: $26 (currently $22.30)

A 21% rise in profits and a 25% dividend increase were the highlights of a better-than-expected 2H CY25 for QBE Insurance. Statutory NPAT hit US$2.15 billion and gross written premiums rose 7% to US$23.96 billion.

It was a result Ord Minnett labelled a "standout" in the struggling general insurance sector, leading to it upgraded its rating to a Buy and raising its price target to $26.

It cited QBE's diversified portfolio against its domestic peers and positive outlook as reasons for the upgrade. "We now see EPS growth of high single-digits in the near and medium term and reduced earnings volatility," it wrote in a note. 

Anything we've missed?

If you think there's an ASX now flashing BUY following reporting season, let us know in the comments below.