UPDATE: JP Morgan Upgrades Stillwater Mining to Overweight on Palladium Fundamentals
JP Morgan upgraded Stillwater Mining (NYSE: SWC) from Neutral to Overweight and raised the price target from $14.00 to $19.00.
JP Morgan commented, "Palladium fundamentals improving as Russian supplies fall and demand for diesel autocatalysts rise. We believe Russian stockpile sales, which had been more than one million ounces in a 7moz market, are disappearing quickly. Demand for diesel autocatalysts continues to rise. With Europe likely to move to Euro 6 emission standards by 2014, we expect manufacturers to switch to more a cost effective Pt/Pd (2:1) mix thus increasing demand for palladium."
Stillwater Mining closed at $13.55 on Monday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.