Update shared on 02 Dec 2025
Fair value Increased 0.49%Northern Star Resources' analyst price target has increased from A$18 to A$22, as analysts cite improved gold prices along with stronger expected margins and growth.
Analyst Commentary
Analysts have provided updated perspectives on Northern Star Resources in light of recent market developments. Their commentary reflects both optimism regarding the company's direction and caution about certain ongoing risks.
Bullish Takeaways
- Bullish analysts point to the continued rise in gold prices as a significant tailwind for Northern Star Resources' earnings potential.
- Stronger margins are expected to enhance valuation, particularly as the company demonstrates effective cost control and operational efficiency.
- Growth prospects remain robust, with expansions and improved output positioning the company for further upside.
- The increased price target reflects confidence in management's ability to execute on strategic initiatives and deliver shareholder value.
Bearish Takeaways
- Bearish analysts remain cautious due to the Neutral rating retained by JPMorgan despite the raised price target.
- There is ongoing concern about volatility in commodity markets, which could impact revenue stability and profitability.
- Execution risks, including the potential for increased operating costs or project delays, continue to weigh on sentiment.
- Some analysts note that the valuation has already priced in much of the expected upside, which may limit short-term rally potential.
What's in the News
- Gold Fields has agreed to sell an A$1.1 billion stake in Northern Star Resources. This move is related to its acquisition of Gold Road Resources and control of an Australian gold mine (Bloomberg).
- Northern Star Resources reported selling 381,000 ounces of gold in the September quarter at an all-in sustaining cost of AUD 2,522 per ounce (Company Announcement).
- The company confirmed operating guidance for fiscal year 2026, targeting 1.7 million to 1.8 million ounces of gold sold at a cost of AUD 2,300 to AUD 2,700 per ounce (Company Guidance).
Valuation Changes
- Fair Value has increased slightly from A$27.26 to A$27.39.
- Discount Rate has risen marginally from 7.68% to 7.72%.
- Revenue Growth expectations have improved from 18.35% to 18.68%.
- Net Profit Margin has edged higher from 28.90% to 29.31%.
- Future P/E ratio has decreased from 19.38x to 19.06x.
Disclaimer
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