OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Citi rates ASB as Buy

Citi views yesterday's announcement of a proposed sale of Austal's US operations to Hanwha as a positive development.

The broker highlights negotiations progressing beyond due diligence to active commercial discussions, suggesting the transaction is moving closer to a potential agreement.

Hanwha has also been granted additional time to finalise a binding proposal, which the analyst considers encouraging for the sale process.

Buy rating and $5.75 target.

Macquarie rates EVN as Neutral

Post the initial take outlined below, the analyst lowers FY27 EPS forecast by -5% on lower gold production with only marginal forecast changes thereafter.

The target price slips to $13 from $13.50 with a Neutral rating retained.

Macquarie's early assessment is that Evolution Mining's quarterly production missed its estimate by -5% and consensus by -10%.

On the other hand, group AISC of $1,653/oz was -10% below forecasts, and thus a positive. Gold production disappointed, while copper provided a positive surprise.

Without copper, this would have been a weak quarterly, says the broker, but luckily the diverse asset base proved its merits.

Neutral rating with a price target of $13.50.

Bell Potter rates PDN as Buy

Paladin Energy delivered September quarter uranium production that was below Bell Potter's estimates because of a planned shutdown and lower quality ore feed, as mining focused on the J-pit development.

The company has reiterated FY27 guidance, with output weighted to the second half. Recoveries are expected to trend higher as ore quality improves.

A FEED study is to be finalised in the current quarter at Patterson Lake South, with an updated expenditure estimate slated for early 2027.

Bell Potter retains a Buy rating, citing a positive medium and longer-term outlook for the uranium market. Target is reduced to $13.80 from $14.50.