Erste Group downgrades Rio Tinto stock rating on iron ore prices
Erste Group reduced its stock rating for Rio Tinto to "Hold" from "Buy," citing concerns over the iron ore prices. Analyst Hans Engel forecasts moderate revenue and profit growth for the company in 2026. Currently, Rio Tinto's stock has a P/E ratio of 14.1, but InvestingPro data indicates it may be overvalued. The primary revenue driver for the company, iron ore, is experiencing declining global prices, which will likely slow revenue growth.
Despite this, the company has consistently paid dividends for 35 years and delivered a 77% return over the past year. InvestingPro provides 9 additional insights for investors. However, recent positive developments include a 28% increase in underlying EBITDA to $14.8 billion and a 75% surge in free cash flow, allowing for a 43% increase in the interim dividend to $3.4 billion.
Both Goldman Sachs and Berenberg have upgraded Rio Tinto to "Buy" from previous ratings, citing strong operational execution and cost management. New price targets have been set at $113.00 by Berenberg and GBP82.00 by Goldman Sachs.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
