Sibanye Stillwater (SBSW) is in a better position than it has been in years, backed by a balance sheet that is "in much better shape" and an improved focus on its existing asset base, RBC said in a note Monday.
Analysts said the company has outperformed this year, with its share price up 250% year-to-date compared with a 125% gain for the VanEck Gold Miners ETF, or GDX.
As a top-tier producer of platinum-group metals and gold, the company has benefited from rising metal prices and financial leverage, they said.
Looking ahead, even if commodity prices remain flat, the valuation gap with peers could narrow on de-leveraging, clearer strategic direction under its new chief executive officer, and capital returns, the analysts said, adding that Sibanye Stillwater could also benefit from potential tariffs on palladium, and given these factors, the speculative risk rating has been removed.
RBC raised its price target on Sibanye Stillwater to $12 from $10.50 and kept its outperform rating on the stock.
Price: 11.20, Change: +0.09, Percent Change: +0.81
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