LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg lowered their target price on precious metals group Valterra Platinum from 2,600.0p to 2,500.0p on Monday following the release of its Q2 production results and H1 trading statement.
Berenberg noted that refined platinum group metals production and sales came in 12% and 8% ahead of its forecasts, respectively, driven by a larger release of work-in-progress inventory.

However, Bernberg said that despite now guiding to the lower end of metal-in-concentrate volumes for 2025 due to flooding at the company's Amandelbult mine, and guiding H1 headline earnings per share to roughly 56% below visible alpha consensus, a strong day for PGM prices helped to lift the shares to close up by 5.8%, which it thinks is unjustified.

Berenberg increased its H1 opex and depreciation expectations, which reduced its FY25 earnings estimates and its price target.

"We update our model for the results and bring our H1 earnings in line with guidance, cutting 2025 EBITDA by 21% and headline EPS by 36%," said the German bank, which also kept its 'sell' rating on the stock.

"The shares are currently trading on 1.47x NAV and 11.9x 2025E EBITDA, and our price target represents 32% downside."







Reporting by Iain Gilbert at Sharecast.com

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