Rio Tinto: Jefferies upgrades to Buy
(CercleFinance.com) - On Friday, an analyst at Jefferies announces that he is upgrading his neutral rating on the Rio Tinto share, now recommending investors buy it.
Jefferies adopted a neutral stance in August, due to an escalating trade war and seasonal demand factors.
"Our analysis suggests RIO's FCF strength through the cycle should lead to a supportive dividend, even in the case of a weak cycle (up to a 5% trough yield on the current share price). Its FCF is resilient as capex varies greatly and its low cost assets are cash generative even in weak markets," the broker appreciates.
Jefferies has a target price of 57 dollars for the share.
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