Sibanye Stillwater Share Price Target Raised on De-Leveraging Prospects

Sibanye Stillwater shares (JSE:SSW) experienced a boost as RBC Capital increased its price target, signaling confidence in the company's strategic direction. The adjustment reflects optimism surrounding Sibanye's de-leveraging efforts, strategic clarity under its new CEO, and the potential for increased capital returns.

The JSE-listed stock has demonstrated considerable volatility this year, currently showing a 201% year-to-date increase. Contributing to the positive sentiment, RBC Capital's upgrade included a price target increase to $12 from $10.50, maintaining an “Outperform” rating.

This reassessment suggests a narrowing valuation gap between Sibanye and its peers, driven by the company's commitment to reducing debt and a clearer strategic vision articulated by its leadership. The firm further suggests that potential U.S. tariffs on palladium could disproportionately benefit Sibanye, positioning it as a key player in the market.

However, not all analyst outlooks have been unilaterally positive. BMO Capital, in early September, also revised its price target upward, albeit to a more modest $8.50 from $7.00, while maintaining a “Market Perform” rating. This adjustment followed the release of Sibanye's first-half 2025 results, which BMO characterized as weaker operationally, particularly citing a guidance downgrade for the company's South African gold operations. Despite these operational headwinds, BMO anticipates a stronger second half, primarily supported by the South African PGM (platinum group metals) segment.

Adding to recent catalysts, Sibanye Stillwater reached a significant settlement with Appian Capital Advisory in this month. The $215 million agreement resolves a dispute stemming from the terminated $1.2 billion deal to acquire Brazilian nickel and copper mines. This settlement, finalized just before court proceedings, provides clarity and avoids further legal expenses, allowing Sibanye to focus on its core operations and strategic objectives. CEO Richard Stewart highlighted the importance of resolving the dispute to allow the company to move forward.

The recent series of analyst upgrades, coupled with the resolution of the Appian Capital dispute, has injected renewed confidence into Sibanye Stillwater's prospects. While operational challenges, particularly within the South African gold segment, persist, the company's de-leveraging efforts, strategic clarity, and diversified portfolio provide a foundation for future growth.