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Tharisa PLC (LON:THS) is “one of the few ways” for investors to gain exposure to strong platinum group metals (PGM) prices, according to analysts at Berenberg.

The German bank, which rates Tharisa at ‘buy’ with a 140p target price, said in a note on Friday that the stock in the miner was “too cheap” at around 0.58 times net asset value (NAV) and that the current outperformance in PGM prices was “providing a major shot in the arm for Tharisa’s revenues”.

READ: Tharisa updates on “solid” end to 2019

“The basket [of PGM prices] should be a driver of consensus upgrades if prices remain strong”, the bank said, and while chrome prices were currently weak, they said the company expected “some improvement” in the third quarter of 2020.

“We think that the [company’s] current valuation is attractive”, Berenberg said, adding in their investment thesis that they saw potential for the shares to rerate once Tharisa delivered its key Vision 2020 chrome project.

In mid-afternoon trading on Friday, shares in Tharisa were 2.4% lower at 81.5p, a 42% discount to the bank’s target price.