Northern Star Resources stock price target lowered to AUD24.00 by BMO Capital

Investing.com - BMO Capital has lowered its price target on Northern Star Resources (ASX:NST) to AUD24.00 from AUD27.00 while maintaining an Outperform rating on the gold mining company. According to InvestingPro analysis, the company currently trades below its Fair Value, with a market capitalization of $15.6 billion and a strong financial health score rated as "GREAT."

The price target reduction follows Northern Star’s fourth quarter and full-year 2025 sales results, which showed Q4 sales of 444,000 ounces, meeting BMO’s expectation of 441,000 ounces but falling short of the consensus estimate of 450,000 ounces.

For the full fiscal year 2025, Northern Star achieved gold sales of 1,634,000 ounces, just meeting the lower end of its revised guidance range of 1,630,000-1,660,000 ounces. The company expects its all-in sustaining costs (AISC) to fall within its revised cost guidance range of AUD2,100-2,200 per ounce.

Northern Star has also released its fiscal year 2026 guidance, with sales projections aligning with BMO Capital’s expectations. However, the company’s AISC and growth capital guidance for FY26 exceeded the research firm’s forecasts.

Despite the higher cost outlook for fiscal year 2026, BMO Capital maintained its Outperform rating on Northern Star Resources stock, citing continued confidence in the company’s overall performance while adjusting the price target downward to reflect the updated cost expectations.

In other recent news, Northern Star Resources has been downgraded by UBS from a Buy to a Neutral rating. This change follows a "disappointing" performance in the March quarter, specifically concerning production at the Super Pit operation. UBS has also lowered its price target for Northern Star from AUD25.80 to AUD23.00. The company maintains its fiscal year 2026 production guidance at 2 million ounces, although market forecasts, including UBS’s, project slightly lower figures. UBS has adjusted its growth expectations for Northern Star, delaying the Hemi project’s first production to the March quarter of 2028. Additionally, UBS has reduced its earnings per share estimates for fiscal years 2026 and 2027 by 6% each, citing approximately 3% lower production forecasts. These developments reflect ongoing adjustments and expectations for Northern Star’s future performance.

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