BMO Capital analyst Raj Ray maintained a Hold rating on Sibanye Stillwater (SBSW – Research Report) on May 9 and set a price target of $5.50.
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Raj Ray has given his Hold rating due to a combination of factors impacting Sibanye Stillwater’s performance. The company’s Q1/25 operational results showed a slight miss in adjusted EBITDA and production across most business units, with the exception of US PGMs. Operational challenges in South Africa’s gold operations and a temporary disruption at the US PGM’s Columbus facility contributed to these results.
Despite the completion of a restructuring in the US PGM segment and the anticipated S45X tax credit, which is expected to alleviate some cost pressures, the overall outlook remains cautious. The unchanged guidance for 2025, aside from adjustments in South African gold production and costs, reflects ongoing challenges. Additionally, the company’s balance sheet shows a significant level of net debt, and there are concerns about PGM price weakness and execution risks, which contribute to the Hold rating.