Should you go for gold with Northern Star shares?

This gold miner's shares are rising today. Will they keep rising from here?

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Northern Star Resources Ltd (ASX: NST) shares are having a positive finish to the week.

In afternoon trade, the gold miner's shares are up almost 1.5% to $10.80.

Can Northern Star shares keep rising?

The broker community is relatively lukewarm on this ASX 200 gold share at the moment.

However, one thing that they do agree on, is that Northern Star's shares can rise meaningfully from current levels.

For example, the team at UBS has a sell rating on its shares but a price target of $11.70, which implies a potential upside of over 8% for investors.

Elsewhere, analysts at Citi are neutral on its shares with a $12.10 price target and Goldman Sachs is neutral with an $11.80 price target.

Goldman Sachs explained its neutral stance recently. It said:

We note that though NST's medium-term production growth remains attractive, taking group production toward ~2Mozpa from FY27-29+, near-term FCF highlights that returns are longer dated, where we see FCF yields of c.1% from FY24-26E factoring in planned growth/sustaining capex. We rate NST a relative Neutral on Valuation, trading on ~1.05x NAV, or pricing ~US$1,770/oz gold (peer average ~1x NAV and ~US$1,730/oz), and a more concentrated near-term execution risk (though a history of value creation through operational improvements/M&A). Our 12m PT of A$11.80/sh offers 6% [now 9%] upside.

One broker that sits firmly in the bull corner is Macquarie. Its analysts have a significantly higher valuation for the gold miner despite recently making a slight reduction to it.

According to the note, the broker has an outperform rating and a $15 price target. This implies a potential upside of almost 40% for investors over the next 12 months.

In addition, Macquarie is forecasting dividend yields of approximately 3% this year and next, sweetening the deal further.

This could make Northern Star shares worth considering if you're looking for exposure to gold.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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