- PALL has moved around 4% higher since our last publication from August 3, despite the 6% sell-off over the past week.
- Palladium has been hurt by renewed dollar strength over the past week, although some of its peers (silver, platinum) have suffered even more over the same period.
- The recovery in the global automotive market continues to be driven by China, which could boost automotive demand for palladium.
- We remain bullish on PALL in the quarters ahead, expecting the palladium market to swing back into a deficit in 2021 after being balanced this year.
- Given the healthy fundamentals of palladium, we are comfortable with buying the dips, setting a 3-month bullish target of $260 per share.
For further details see:
PALL Weekly: Sell-Off Provides Buying Opportunity