The team at Morgans has been busy running the rule over some popular ASX shares recently.
Let's see what it is saying about the two listed below. Are they buys, holds, or sells?
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Chalice Mining Ltd (ASX: CHN)
This mineral exploration company's shares have been on fire over the past 12 months. The good news is that the broker doesn't believe it is too late to invest, but only if you have a high tolerance for risk.
Morgans recently put a speculative buy rating and $4.50 price target on its shares. This implies potential upside of over 80%.
It believes the ASX share is well-positioned to benefit from increasing demand for palladium. It said:
CHN released a Pre-Feasibility Study (PFS) for the Gonneville Pd-Ni-Cu project. The PFS was broadly in line with MorgansF, with key beats to Stage 1 capex (-9%) and palladium payabilities (+7%). Macro tailwinds are turning supportive: the EU is moving to soften its 2035 ICE ban (supportive for hybrids/Pd demand) while the already small ~9Mozpa palladium market is tightening, running an estimated ~0.2Moz deficit even before any meaningful industrial demand uplift.
We reiterate our SPECULATIVE BUY rating with a A$4.50ps target price (previously A$2.90ps), a function of a refreshed spot scenario following a +122% increase in Pd prices over the past eight months and PFS input updates.
Northern Star Resources Ltd (ASX: NST)
This gold miner's recent quarterly update didn't impress Morgans. It notes that the ASX share is experiencing operational challenges across all hubs.
As a result, the broker has downgraded its shares to a hold rating with a reduced price target of $26.00.
While the broker is positive on the company's long-term outlook, it thinks it sees the short term as challenged. It explains:
NST has revised FY26 guidance lower after another soft sales quarter, cutting the midpoint ~8% to 1,650koz (from 1,775koz). The downgrade reflects ongoing operational challenges across all hubs, including grade, throughput and utilisation constraints. This marks the second guidance miss in as many years. While we remain constructive on NST's long-term growth pathway, we are adopting a more cautious (previously bullish) short-to-midterm production outlook, maintained until delivery consistency improves.
We now forecast FY26 sales of 1,589koz (-9%), marginally below updated guidance (1,600–1,700koz). We lift our AISC to A$2,770/oz, reducing forecast EBITDA and EPS by 16% and 22% respectively. Rating revised to HOLD, price target A$26.00ps (previously A$27.41ps). The downgrade partly offset by our higher spot scenario of US$3,500/oz (from US$3,250/oz).
