The Montana-based mining company has successfully refocused its strategy, analysts said.
"Primarily as a result of three expansion projects currently under way, as well as company-specific cost cutting initiatives, we estimate Stillwater has the potential to increase annual PGM (77% palladium, 23% platinum) volume by ~18% while reducing all-in sustaining costs by ~10% from 2014-2018," analysts said.
"After a three-year period during which Stillwater attempted to aggressively grow via acquisitions or expansions, a new senior management team at Stillwater has refocused the strategy back toward expanding the Montana asset base and controlling unit costs," analysts added.
Shares of Stillwater closed down 0.3% at $13.13 yesterday.
Separately, TheStreet Ratings team rates STILLWATER MINING CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate STILLWATER MINING CO (SWC) a HOLD. The primary factors that have impacted our rating are mixed--some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."