Northern Star Resources downgraded to Neutral from Buy at Citi

Citi downgraded Northern Star Resources (NESRF) to Neutral from Buy with a price target of A$17, down from A$18.30, calling the company’s scrip deal for De Grey a “deviation from their typical bolt-on or asset-turnaround playbook.” The firm thinks the deal makes sense to mitigate an ageing, increasingly capex-intensive portfolio, but adds that in the near-term it detracts from Northern Star’s “clean beta to gold appeal” with the risk of higher expenses plus development risk.