OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Citi rates APZ as Buy

While no update on Citi's target or rating is currently available, the analyst considers the risk/reward for Aspen Group compelling at current levels following the 1Q update.

The broker highlights the stock is trading on 19.0x FY27 PE and at a premium to reported net tangible assets (NTA).

Buy rated with a $6.10 target price.

Initial Take: Citi retains its Buy rating on Aspen Group following today's stronger-than-expected 1Q27 update.

In a prescient move, the broker had last week kept its 90-day catalyst watch on the stock, largely in anticipation of these results. The catalyst watch ends on December 7 and was added on September 7.

Quarterly earnings (EBITDA) rose 38% to $17.8m, while realised development profit increased 98% to $7.9m.

Residential rental occupancy remains near full, with net rental income margins expanding 300bps to 58%, while 78% of the FY27 development pipeline is already contracted.

Management has retained FY27 guidance despite the strong start, which Citi views as appropriately conservative.

The current 19x FY27 PE is seen as justified by strong growth, a deep development pipeline and resilient returns.

Ord Minnett rates NST as Upgrade to Accumulate from Hold

Ord Minnett upgrades Northern Star Resources to Accumulate from Hold, raising the target to $25.85 from $19.70 as it incorporates a takeover premium. The company has confirmed it rejected an unsolicited and conditional proposal from Gold Fields, which implied a consideration of $27.

The broker asserts the bid was opportunistic, arriving during the ramp-up of KCGM and the transition in CEO. A large scrip component further reduced the appeal, Ord Minnett adds, although the public disclosure could increase shareholder pressure to engage with potential bidders.

Macquarie rates WES as Outperform

Macquarie considers the possible impact of changing consumer behaviours in the pharmacy market against the launch by Eli Lilly of LillyDirect in Australia in September.

The analyst believes there are three major challenges for LillyDirect with major differences between the Australian and US pharmacy industries.

By comparison, relative pricing advantages of direct-to-consumer are lower in Australia due to insurers/pharmacy benefit managers, with limitations to lowering prices for GLP-1 scripts for larger wholesalers.

In the US, corporations can own pharmacies; not in Australia, only pharmacists, and there is already regulatory pushback.

Concerns over LillyDirect are viewed as overdone. For Wesfarmers: unchanged target of $85 and Outperform rating.