Sibanye Stillwater stock gets Neutral rating from BofA as analyst sees balanced risks

Investing.com - BofA Securities has reinstated coverage on Sibanye Stillwater (NYSE:SBSW) with a Neutral rating and a price target of $11.80, according to a research note released Monday. The mining company, currently valued at $8.09 billion, has shown remarkable momentum with a 245% return year-to-date according to InvestingPro data.

The price target represents a 1.35x price-to-net present value multiple, which BofA notes is above the historical average of 0.7x but consistent with current trading multiples for industry peers Harmony Gold (1.3x) and Impala (1.2x).

BofA’s analysis highlights Sibanye’s positive exposure to precious metals prices, noting the stock has a 3x beta to gold prices and 1.4x beta to platinum, with the firm expressing a constructive view on gold and seeing potential upside risk to platinum group metals (PGM) prices.

Despite these positive factors, the research firm remains cautious about diminishing flexibility at the company’s core cash-generating South African assets and uncertainty surrounding strategy under the new CEO, citing a need for more visibility on reinvestment returns.

The firm believes risks are balanced with the stock currently trading at a fully re-rated 1.3x P/NPV multiple, identifying potential upside from gold and PGM prices while flagging downside risks related to production stability, asset quality, sustaining capital expenditures, and reinvestment returns.

In other recent news, Sibanye Stillwater has seen a change in its stock price target. BMO Capital increased the company’s price target to $8.50 from a previous $7.00. This adjustment comes in the wake of Sibanye Stillwater’s first-half 2025 results, which BMO Capital characterized as "softer from an operational perspective." Despite this, BMO Capital maintained a Market Perform rating for the stock. The company’s recent results included a guidance downgrade for its South Africa Gold business. These developments have prompted analysts to reassess their expectations for the company. Investors may find these updates significant as they consider their positions.

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