Rio Tinto: Deutsche Bank a buyer again
(CercleFinance.com) - On Monday Deutsche Bank upgraded Rio Tinto shares from "hold" to "buy", saying that it likes the stock again after a two-year hiatus.
After falling by over 20% YTD, the analyst now sees "attractive" potential for value creation in the stock, a view that he believes is reinforced by the quality of the mining giant's activities and its comfortable cash flow.
The broker points out that the consensus has been more pessimistic about the group in recent years due to concerns about the iron ore market and certain questions regarding its strategy - particularly in terms of ESG.
Although it says that it has lowered its iron ore forecasts for 2023 and 2024, Deutsche Bank stresses that its estimates exceed those of the consensus.
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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.
After falling by over 20% YTD, the analyst now sees "attractive" potential for value creation in the stock, a view that he believes is reinforced by the quality of the mining giant's activities and its comfortable cash flow.
The broker points out that the consensus has been more pessimistic about the group in recent years due to concerns about the iron ore market and certain questions regarding its strategy - particularly in terms of ESG.
Although it says that it has lowered its iron ore forecasts for 2023 and 2024, Deutsche Bank stresses that its estimates exceed those of the consensus.
Copyright (c) 2023 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.