Contact us Find us Register
Back to previous section

JPMorgan moves to ‘overweight’ on Rio Tinto following period of restriction.

JPMorgan Cazenove moved to an ‘overweight’ rating on Rio Tinto on Tuesday and 5,920p price target following a period of restriction during which the stock was not rated.

  • Rio Tinto
  • 18 March 2025 11:15:57
Rio Tinto

Source: Sharecast

The bank noted that it upgraded its EMEA Metals & Mining sector view in February, reflecting its expectation for stronger China growth momentum following the annual NPC meeting on 5-8 March.

It pointed out that Rio shares are only around 3% higher over this period, outperforming the sector by around 5%, and that Rio is its only ‘overweight’ among EMEA diversified miners. JPM said it expects sustained outperformance versus peers in 2025.

"We forecast 25-30% EBITDA growth versus 2024E at spot commodity prices, 2025/26E mark to market EBITDA implies circa 25% upside to Bloomberg consensus largely due to the more than 10% rally in copper year-to-date, plus Rio’s trading multiples are at a 10-20% discount to peers and its own trading history (4.5x 2025/26E EV/EBITDA, circa 7% free cash flow yield)," it said.

JPM said Rio has substantially the highest copper volume growth of the EMEA diversified miners at more than 30% 2024-28E.

FTSE 100 ( UKX )

ISIN: N/A
Exchange: London Stock Exchange
Sell:
0.00
Buy:
0.00
Change: 1.95 ( 0.02 %)
Date:
Prices delayed by at least 15 minutes

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

View our accounts

Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.