If you are in the market for some new portfolio additions, it could be worth seeing what the team at Morgans is saying about the three ASX shares in this article. 

Does the broker rate them as buys, holds, or sells? Let’s find out:

Deep Yellow Ltd (ASX: DYL)

Morgans highlights that this uranium developer’s final investment decision (FID) for the Tumas project is behind schedule due to uncertain equity market and funding conditions.

Nevertheless, it remains positive and sees an opportunity for investors with a higher tolerance for risk to buy its shares. It has retained its speculative buy rating with a reduced price target of $1.50. Morgans said:

DYL has withdrawn its targeted 4Q26 Final Investment Decision (FID) for Tumas, citing weakness in equity market conditions and a constrained funding backdrop for uranium developers. The FID deferral is not entirely surprising given the weakness in DYL’s share price over recent months. In our view, raising equity at current levels would have represented an unattractive funding outcome for existing shareholders. 

Importantly, we view this as a delay rather than a change in strategy, with DYL remaining focused on advancing Tumas and positioning the project for a future FID. We maintain our rating of SPECULATIVE BUY with a price target of A$1.50ps (previously A$1.95ps).

PLS Group Ltd (ASX: PLS)

One ASX share that has made an FID this month is lithium miner PLS. 

The decision was a touch mixed with higher capital expenditure but also higher steady-state production. As a result, the broker has retained its accumulate rating on PLS shares with a $3.70 price target. It said:

PLS has taken FID on the ~A$1.9bn P2000 expansion, lifting capacity to ~2Mtpa (from ~1.2Mtpa) with first production targeted in 1Q FY30. P2000 capex is ~20% above MorgansF, but steady-state production is higher (+16%) and sustaining + mine development spend lower (-14%). Maintain ACCUMULATE with A$3.70ps target price.

Pro Medicus Ltd (ASX: PME)

Now could be a good time to buy Pro Medicus shares according to Morgans.

In response to a new contract win, the broker has upgraded its shares to a buy rating with a $230.00 price target. It commented:

PME has announced a further seven-year, A$24m full stack cloud contract with Billings Clinic Logan Health, its third new community health system win in FY27 to date (A$72m TCV, A$10.3m new ARR). The FY27 wins are modest individually but consistent in size, term and scope, pointing to a repeatable mid-market playbook that broadens the pipeline beyond large Integrated Delivery Networks. 

Near-term focus shifts to RSNA in late November as the likely window for a larger deal, and to execution on a busy 1Q’CY27 go-live schedule underpinning FY28. We upgrade to a BUY (from Accumulate), with no change to our A$230 target price.

The post Buy, hold, sell: Deep Yellow, PLS, Pro Medicus shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Northern Star Resources Ltd (ASX: NST) share price is in focus today after the company reported September quarter gold sales of 364,000 ounces at an all-in sustaining cost (AISC) of A$3,217 per ounce, with net mine cash flow of A$210 million.

What did Northern Star Resources report?

• Gold sold: 363,891 ounces for the quarter
• All-in sustaining cost (AISC): A$3,217/oz (US$2,244/oz)
• Net mine cash flow: A$210 million (all three centres positive)
• Group underlying free cash flow: negative A$31 million (including A$113 million tax payments)
• Cash and bullion as at 30 September: A$1,200 million
• FY27 production guidance unchanged: 1,500–1,650koz gold sold at AISC of A$3,050–3,450/oz

What else do investors need to know?

Northern Star completed the KCGM mill tie-in during the September quarter, with commissioning of the expanded plant now underway. This milestone is key for the group’s long-term production plans, though mill ramp-up affected grades and recoveries for the quarter.

All three production centres—Kalgoorlie, Yandal, and Pogo—delivered positive cash flow. The company invested A$56 million in exploration, while the Hemi Project studies are progressing to plan towards a final investment decision late in FY27.

Northern Star’s balance sheet remains strong, with A$1.2 billion in cash and bullion and bank facilities in place. The company utilised A$500 million of these facilities post quarter-end to help maintain targeted cash levels ahead of a dividend payment.

What did Northern Star Resources management say?

Suresh Vadnagra, Managing Director & CEO, commented:

The September quarter has delivered another major milestone for Northern Star with completion of the KCGM mill tie-in and commencement of commissioning of the integrated plant. Commissioning is progressing in line with expectations for this early stage. We have also had a solid start to FY27 across our operations, with all sites delivering in line with plan. While I still have a lot to learn about our individual assets, we have a high-quality asset base and a strong foundation on which to grow. Consistent delivery will be fundamental to our success and will require strong operating discipline, clear accountability and a group-wide focus on costs, execution and capital discipline. My immediate priority is to understand the business in parallel with focusing on completing the KCGM mill expansion safely and efficiently as well as ensuring consistent delivery across the portfolio.

What’s next for Northern Star Resources?

FY27 production guidance is unchanged, with the company aiming for up to 1.65 million ounces of gold sold at lower costs over the year. Production is expected to be weighted to the second half, as the expanded KCGM plant ramps up.

Northern Star is focused on cost discipline, capital management, and advancing its growth projects, including Stage II of the KCGM expansion and the Hemi Project. Management says a portion of FY27’s capital expenditure remains discretionary, giving flexibility should operating conditions change.

Northern Star Resources share price snapshot

Over the past 12 months, Northern Star Resources shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.

View Original Announcement

The post Northern Star Resources posts production and commissioning update appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

CSL Ltd (ASX: CSL) shares have had a tough ride over the past couple of years.

The shares were relatively stable, mostly trading between $250 and $300 between late-2019 until around August last year.

Then they crashed.

Between mid-August to late-May this year, CSL shares shed around 64% of their value. On the 3rd of June, the shares closed at an 11-year low of just $92.24 a piece.

The good news is that since hitting that low, the shares have rebounded around 113% at the time of writing, to $196.91.

It’s an incredible reversal for the ASX biotech stock.

Some are now incredibly bullish that the company can keep climbing higher, but some more reserved market experts think there is potential for another tumble ahead.

I decided to look at both the bull and the bear case for CSL shares, and came up with my own conclusion.

Here’s what I found.

The bull case for CSL shares

CSL has an incredibly dominant market position in a high-growth market. The global biotechnology company develops and delivers biotherapies and vaccines to support people with life-threatening medical conditions. 

Its plasma therapies business (CSL Behring) is a major powerhouse in the global plasma market. Alongside competitors Grifols and Takeda, the three businesses control around 80% of the global plasma therapy market.

Then its CSL Seqirus business is the world’s second-largest influenza vaccine manufacturer.

And its CSL Vifor business is a global leader in iron deficiency and iron deficiency anaemia therapies.

Its position could well grow stronger, too. There will also be an ongoing need for immunoglobulin, influenza vaccines, and plasma therapies, and CSL is well-placed to scoop up a lot of that demand.

The company is undergoing an aggressive cost-savings and restructuring plan. In FY26, the company delivered US$176 million in pre-tax savings, which was well ahead of schedule, with more in the works. CSL is aiming to achieve around US$500 million to US$550 million in annual pre-tax savings by late FY28.

For FY27, the company is guiding a return to growth, including a 5% increase in underlying NPAT, which signals an operational turnaround and bottom line recovery for a once struggling business.

The bear case for CSL shares

Key reasons for the sharp CSL sell-off earlier this year were a loss in confidence for CSL’s earnings trajectory, a weaker profit outlook thanks to a lower flu vaccine rate in the US, guidance downgrades, and the sudden exit of its CEO in February.

The combination, especially within a short period of time, has raised questions about the company’s stability and forward earnings visibility.

Management called FY26 the year of a huge financial reset and flagged FY27 as the year for growth. But forward guidance of a 5% increase in its NPAT suggests a slow return to growth rather than an explosive one.

There is the potential that CSL’s ability to generate growth and profit now relies on its aggressive cost-cutting plan rather than true business expansion.

And let’s not forget the huge operational headwinds the company faced in FY26. These are still in the works. Elevated costs, logistic and shipping issues, softer US vaccine demand, and the cost of its latest restructure are headwinds that are likely to continue at least for the near term.

Then there is the CSL share price itself. After storming over 110% higher over the past four months, some are questioning whether the rebound is overdone, and whether CSL shares have climbed too high, too quickly.

My verdict

When I look at the short term, I’m concerned that CSL shares have rebounded fast over a short period of time. I think there is potential that the shares have raced too far ahead of value, and I wouldn’t be too surprised to see that profit-taking investors step in over coming weeks and send the shares tumbling south again.

It looks like the latest rally assumes that the growth picture will unfold without a hitch, and that a gradual and consistent path to recovery is likely.

Any indication that the company is not able to maintain the growth momentum it expects for FY27 could trigger a crash in confidence and widespread selling.

But, if I look at the broader picture, I’m a little more positive. 

It looks like the worst is over for CSL shares.

Management’s structural reset, cost efficiency plans, strong market position, and demand for its products suggest the company is finally getting its ducks back in a row.

To me, it looks like the long-term road to recovery is now underway for CSL, although I expect a few bumps along the way.

What do the experts think?

If we look at expert outlooks, sentiment is mostly positive, but there are mixed messages about whether there is much more upside ahead for CSL shares over the next 12 months.

TradingView data shows that 11 out of 19 analysts have a buy/strong buy rating on the ASX healthcare shares. And another eight have a neutral stance.

But the average $187.52 target price implies around a 5% downside at the time of writing. 

The team at Ord Minnett has an accumulate rating on CSL shares. The broker said it thinks the company’s Behring business can deliver stronger growth through FY27 to FY29. 

Morgan Stanley is also positive on the shares with a buy rating and a $182 target price. The broker is also positive about improvement out of CSL’s Behring business, which it identifies as the company’s key group earnings driver. 

The post CSL shares: I weighed up the bull and bear case, and here's my final verdict appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.