Evolution Mining and Northern Star shares drop on UBS downgrades
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The news: Northern Star Resources and Evolution Mining were two of the worst performing ASX 200 stocks after morning trade as UBS downgraded its ratings on the two gold miners.
The numbers: Evolution shares were down 5.7% to $8.68 at midday AEST. Northern Star shares fell 5.1% to $21.38.
UBS downgraded Evolution to 'sell' and cut its price target 15% to $6.70. It also downgraded Northern Star to 'neutral' and trimmed its price target 11% to $23.
Meanwhile, Newmont shares rose 1% to $88.95 after UBS reiterated its 'buy' rating and hiked its price target 17% to $105.
The context: UBS analysts noted that Evolution has outperformed the market over the year to date, with shares climbing 81%. However, UBS has lowered its production outlook and increased its capital expenditure estimates for fiscal 2026 and 2027, leading to the downgrade.
The analysts also downgraded Northern Star following a "disappointing" March quarter, despite a 39% share price rally over the last 12 months.
UBS reaffirmed its position on Newmont, describing the miner as "relatively better positioned" after an extended period of production underperformance. The company's March quarter beat expectations, the analysts said, and is forecast for competitive free cash flow into 2026.
The source: UBS research
