The chart below shows the buy recommendations of brokers. Companies are only displayed in this table if at least 5 of the above mentioned brokers have a current position on the stock. A broker sentiment value of +1 means all brokers have a buy recommendation. The target price upside/downside is relative to the price at the time the table was updated.
The stocks with the largest target price upside this week are Alacer Gold Corp with 90.24% and Syrah Resources with 45.82%.
[table “288” not found /]In the good books
NORTHERN STAR RESOURCES LTD (NST) Upgrade to Hold from Sell by Deutsche Bank B/H/S: 0/4/2
Northern Star’s June Q production came in 25% ahead of Deutsche Bank thanks to an excellent quarter at Jundee featuring a 50% grade increase. The FY17 result will come in at the top end of guidance.
The broker believes a more muted FY18 guidance range is conservative given a number of short term catalysts ahead, such as the Kalgoorlie plant extension study and reserve upgrade. The company’s August strategy day awaits. A target increase to $4.40 from $4.30 prompts an upgrade to Hold.
See also NST downgrade.
In the not-so-good books
NORTHERN STAR RESOURCES LTD (NST) Downgrade to Neutral from Buy by Citi B/H/S: 0/4/2
Northern Star’s June Q production beat Citi’s forecast by 19% and costs by 4%, with Jundee driving outperformance. FY18 guidance is in line with expectation as Kalgoorlie and Jundee grow while the focus at Paulsens shifts to exploration.
Citi expects positive news and a reserve upgrade at the August strategy update but believes the good news is priced in for now. Downgrade to Neutral. Target rises to $5.10 from $4.85.
See also NST upgrade.
NAVITAS LIMITED (NVT) Downgrade to Neutral from Buy by UBS B/H/S: 1/3/1
UBS continues to like the longer term structural thematic that supports the outlook for a company like Navitas; it’s all about increasing wealth in developing countries driving demand for education services within developed countries.
Plus the risk for Navitas losing another contract like Macquarie or Curtin within the Australian operations is lower than the analysts thought previously. Nevertheless, UBS sees headwinds on the horizon for FY18, and that’s why the rating has been pulled back to Neutral from Buy.
Estimates have been lifted, but even so the forecast remains for a minor -3% EPS decline in FY18. This makes the current share price less attractive after recent appreciation. Target lifts to $5 from $4.50.
Earnings forecast
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