Party for platinum over for now - JP Morgan cuts price forecasts

JPMorgan has reduced its price forecast for platinum group metals due to the worsening economic situation.

LONDON (Reuters) - 

JPMorgan cut its price forecasts for platinum group metals and targets for producers, due to worsening economic conditions, it said on Monday.

"We think the party may be over for platinum for now," a research note from Johannesburg-based analysts Steve Shepherd and Allan Cooke said. "Notwithstanding a wide range of uncertainties, we're not altering our positive longer-term views."

The investment bank cut its 2008 price target for platinum to $1,885 an ounce from $2,156 and for 2009 to $1,650 from $1,981. The spot platinum price has slid 13 percent to $1,745 over the past two weeks.

It retained its "neutral" rating for the world's biggest platinum producer Anglo Platinum Ltd , majority owned by Anglo American Plc , while cutting its six-month share price target to 961 rand from a previous 1,305 rnd.

JP Morgan reiterated its "overweight" rating for No. 2 Impala Platinum Ltd , cutting its six-month target to 248 rand from 423 rand.

It maintained a "neutral" rating on No. 3 Lonmin Plc and cut its six-month target price for the London-listed shares to 2,300 pence from 3,590p and for the Johannesburg shares to 352 rand from 580 rand. (Reporting by Eric Onstad; Editing by David Holmes)

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