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RIO - Rio Tinto News Story

6388p -20.0  -0.3%

Last Trade - 9:46am

Sector
Basic Materials
Size
Large Cap
Market Cap £103.74bn
Enterprise Value £107.66bn
Revenue £32.09bn
Position in Universe 12th / 1821

BUZZ-Rio Tinto: Socgen upgrades on higher dividend prospects

Fri 19th March, 2021 7:49am
** Socgen upgrades miner Rio Tinto Plc  RIO.L  to "buy" from
"hold", raises PT by 40% to 6,770p 
    ** Brokerage made the changes following a revision in their
commodity price deck with upgrades in iron ore, aluminium and
copper assumptions
    ** Iron ore remains the principal cash flow driver for RIO
representing around 90% of group's FCF in 2021-23 - Socgen
    ** Brokerage sees RIO as a dividend growth story with
opportunities for attractive organic growth
    ** Thinks RIO's exceptionally strong FCF generation will
translate into a +15% dividend yield on a 12-month horizon and
expects it to remain strong over 2021-23
    ** "RT is one of the low beta names in the sector owing to
its exceptional asset quality and balance sheet strength, makes
it one of the safer names to own after a major rally" - Socgen
    ** Avg rating among 24 analysts covering RIO is "hold";
Median PT is 6,000p - Refinitiv Eikon Data
    ** YTD, RIO up 2.67% as of last close

 (Reporting by Aniruddha Chakrabarty)
 ((aniruddha.c.thomsonreuters.com@reuters.net))
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