Royal Bank of Canada (TSX:RY) is wary about the platinum market going forward due to the sharp decline in petrol/diesel vehicles expected from here on.
Platinum and associated metals rhodium and palladium are used in exhaust convertors, but combustion engine sales falling faster than expected RBS has cut its price targets to 2030 by 20%.
Shorter term, the picture is brighter due to supply issues and a bounce in vehicle sales but from 2025 RBC sees palladium and rhodium as being in perpetual surplus.
Platinum should recover after 2030 as the hydrogen economy emerges.
By company, RBC likes Sibanye-Stillwater (outperform - target US$10) after a 50% plus fall over the past twelve months while Anglo American is a 'sector perform' with a price target of 2,400p.
Other platinum-focused companies in London but not mentioned by RBC include Johnson Matthey (1,958p), Tharisa (92.6p) and Jubilee Metals (8.05p).