2023-03-22 11:54:18 ET
Sibanye Stillwater ( NYSE: SBSW ) +2.5% in Wednesday's trading as RBC Capital upgraded the stock to Outperform from Sector Perform with a C$10 price target, expecting a rebound in the company's commodity basket will drive a re-rating.
Sibanye ( SBSW ) shares have been chopped in half during the past year, driven by declining platinum group metals prices and various operational issues, but "a turning point is approaching," according to RBC's Tyler Broda, who estimates the company's commodity basket will increase by 8% during this year's H2, helping improve profits and momentum.
Broda believes a combination of higher production, resilient prices and Keliber's commissioning are set to raise Sibanye's ( SBSW ) EBITDA by ~50% in 2023-24 from 2023 levels and return free cash flow yields to 23.3% from 5.2% in 2023.
Sibanye Stillwater ( SBSW ) shares have priced in the negative effects of the recent financial statements, the Eskom news and the decline in PGM metal prices, Oakoff Investments writes in an analysis posted recently on Seeking Alpha .
For further details see:
Sibanye Stillwater raised at RBC as PGM market turning point approaches