SHARES in Impala Platinum were rated a buy by Goldman Sachs today which said the risks inherent in the company had been priced in by the market following its share price slide this year which saw it reach its lowest value since 1999 on May 10. “We upgrade Impala Platinum to Neutral, from Sell, following recent underperformance,” its said in a note.
Shares in Implats had fallen 26% against the MSCI EMEA Index since it was added to the sell list, said Goldman Sachs. Its concerns at the time was two cuts in production guidance at Implats’ Rustenburg mine and a concern its balance sheet was under stress which might precipitate a rights offer. The low platinum price was a third factor.
“While the outlook for the company remains uncertain, especially given the continued underperformance at the lease area – we believe that those risks are priced in now, hence our upgrade,” said Goldman Sachs on May 11.
