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

Morgans rates AVH as Downgrade to Hold from Speculative Buy

Morgans downgrades Avita Medical to Hold from Speculative Buy and maintains a $1.35 target. The shares have been volatile, driven by the closure of the MAC reimbursement overhang and early signs of the commercial recovery.

The broker notes the share price has rallied hard on "reasonable" volumes, closing the gap to the target and removing the margin of safety that supported the prior call.

At the current price the stock offers limited opportunity versus current expectations and there is no "fresh data" since the first quarter.

Morgans confirms the long-term thesis around RECELL adoption, Cohealyx scaling and international opportunity is unchanged.

Yet persistent shortfalls in sales and ongoing guidance downgrades as well as a high cash burn mean the capital risk is elevated.

Citi rates NST as Buy

Citi observes Northern Star Resources 4Q26 production update was a beat with gold sold of 433koz, which came in around 11% above consensus.

Kalgoorlie beat by 8%, Yandal 14% and Pogo 17%, with the 18% q/q rise in sales from Yandal likely to offer some relief to investors post the prior Jundee issues, the analyst states.

Group FY26 gold sales of 1,543koz was in excess of the revised guidance over 1,500koz. Unaudited cash and bullion was $1,255m, a rise of $72m on the prior quarter, versus consensus expectations of a net outflow of around -$203m.

Share buybacks were $129m over the period and the KCGM Mill expansion stage 1 is still expected to be commissioned early in FY27, Citi highlights.

Buy rated. Target $29.70

Macquarie rates PPT as Outperform

Perpetual has rejected a non-binding indicative proposal from EQT AB of $21.64 per share which aligns with Macquarie's valuation of the investment manager, albeit there is scope for EPS growth upside from cost outs and new management.

EQT previously bid for Perpetual with Regal Partners ((RPL)) in 2024 and has returned with this bid, with the EQT structure offering a potential way to manage the tax liability of $500m which the analyst highlights as the reason the KKR offer failed in 2024.

Target price remains unchanged at $21.60 with an Outperform rating.