TSX futures point slightly higher ahead of key employment figures
Investing.com - BMO Capital raised its price target on Sibanye Stillwater (NYSE:SBSW) to $8.50 from $7.00 on Tuesday, while maintaining a Market Perform rating on the stock. According to InvestingPro data, the stock is currently trading near its Fair Value, with analyst targets ranging from $8.00 to $8.45.
The price target increase follows Sibanye-Stillwater’s H1/25 results, which BMO described as "softer from an operational perspective." The mining company’s results included another guidance downgrade for its South Africa Gold business. While the company wasn’t profitable in the last twelve months, InvestingPro analysis indicates expected profitability this year, supported by a healthy current ratio of 2.89.
BMO Capital expects Sibanye-Stillwater’s production to be slightly back-end weighted, driven by the South Africa PGM (platinum group metals) business, which continues to be the company’s mainstay.
The research firm noted that the SA PGM business is well-positioned to benefit from the recent uptick in PGM prices, which has helped drive the company’s share price performance.
Year-to-date, Sibanye-Stillwater’s share price has performed well due to its "relatively higher torque to commodity prices," according to BMO Capital’s analysis, which factored into the decision to increase the price target.
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