Citi’s Kate McCutcheon has upgraded Northern Star Ltd to Buy from Neutral, raising its target to $22.50 (up 13%).
It also lifted Evolution Mining Ltd’s target 21% to $8.50 amid record gold prices.
EVN has outperformed NST by ~90% over the past year due to balance sheet de-gearing, clearer outlook, and focus on production over M&A.
McCutcheon says NST’s recent downgrades have hurt trust but expects a rebound in Q4 after guidance resets and Gold Road sells its 3.4% stake.
NST last traded at $19.89, EVN at $8.65.