Rio Tinto: shares rise after J.P. Morgan upgrade

(CercleFinance.com) - Shares in Rio Tinto rose on Monday, with a broker upgrade highlighting the discount of the mining giant's shares compared to its rivals.


J.P. Morgan upgraded Rio from "neutral" to "overweight," while cutting its target price from 4,950 pence, saying that the shares had lagged BHP by over 10% year-to-date.

"We cite as positive for iron ore in the short term: China's fiscal loosening and infrastructure investment, China's anti-pollution steel capacity shut downs (Nov-Mar) that we expect will boost demand for high quality Australian iron ore," it said.

At 11.15, shares in Rio, which have fallen by 10% so far this year, were up 0.5% at 3,526.5 pence.

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