Buy, hold, sell: Collins Foods, Liontown, and Northern Star shares

If you are hunting for new investments, then read on.

That’s because Morgans has just given its verdict on three popular ASX 200 shares.

Are they buys, holds, or sells? Let’s find out what the broker is saying:

Collins Foods Ltd (ASX: CKF)

This KFC-focused quick service restaurant operator caught the eye of Morgans this month after announcing an attractive acquisition in Germany.

The broker believes the deal is sensible and could be the start of a re-rating for its shares. As a result, it has upgraded them to a buy rating with a $12.70 price target. It said:

CKF has announced what we see as a high-quality German KFC bolt-on at attractive economics. CKF is acquiring an eight-restaurant Bavarian portfolio at just under 6x restaurant-level EBITDA (pre-AASB 16) and expects the deal to be immediately EPS accretive. The Germany runway has been extended through the German Development Agreement (DA) to 45-90 new restaurants (from 40-70), materially extending the organic growth runway.

We believe this was a sensible, returns-focused deal that adds weight to the Germany growth story; execution is still key, but with a refreshed team and strong operators at the helm, success in Germany should be the catalyst for a re-rate despite lingering Netherlands noise. We upgrade to a BUY with a $12.70 target (was $12.40).

Liontown Ltd (ASX: LTR)

Lithium miner Liontown released its results last week and reported EBITDA and a loss that were ahead of expectations.

In addition, it was pleased to see that its balance sheet has been strengthened significantly.

As a result, it has upgraded Liontown shares to a hold rating with a $1.80 price target. It explains:

EBITDA and underlying NLAT beat MorgansF and consensus expectations, though earnings remain impacted by ramp-up costs. Kathleen Valley production continues to scale, the balance sheet has strengthened materially, and a brownfield expansion appears increasingly likely. We upgrade to a HOLD rating (from TRIM) with a A$1.80ps target price as we see the stock as trading at fair value.

Northern Star Resources Ltd (ASX: NST)

This gold miner disappointed Morgans with its second guidance downgrade of the financial year.

However, due to its attractive valuation, the broker has retained its buy rating on Northern Star’s shares with a reduced price target of $30.00. It said:

NST has downgraded gold sales for the second time in FY26 and the third time since FY25, withdrawing full year guidance entirely, although indicate sales may exceed 1,500koz Au. The frequency, persistence and severity of operational issues across both KCGM and Yandal are concerning.

We have downgraded our forecasts for KCGM (FY26, FY27) and Yandal (FY26 and beyond) until operations demonstrate a period of stability. We downgrade our price target for NST to A$30.00ps (previously A$35.00ps). Our BUY rating is maintained, we note valuation strength is derived from the long-term growth profile rather than near-term earnings.

The post Buy, hold, sell: Collins Foods, Liontown, and Northern Star shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Collins Foods. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.