Rio Tinto: Credit Suisse downgrades to sell
(CercleFinance.com) - Credit Suisse has downgraded its "neutral" rating on the share of the Austalian/British mining group Rio Tinto to sell ("underperform") after its YTD increase of 30%.
The broker has cut its corresponding target price from 4,340 pence to 4,300 pence, which suggests downside potential of 7%.
After the strong YTD performance of the Rio Tinto share, Credit Suisse estimates that iron ore prices, the group's key raw material with its Australian mines, is close to a turning point. It cites factors such as the momentum in China port inventory drawdowns slowing, and supply continuing to recover.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker has cut its corresponding target price from 4,340 pence to 4,300 pence, which suggests downside potential of 7%.
After the strong YTD performance of the Rio Tinto share, Credit Suisse estimates that iron ore prices, the group's key raw material with its Australian mines, is close to a turning point. It cites factors such as the momentum in China port inventory drawdowns slowing, and supply continuing to recover.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.