UPDATE: Dahlman Rose Lowers PT on Rio Tinto to $115

Dahlman Rose is out with its report today on Rio Tinto (NYSE: RIO), lowering its PT from $127 to $115.

In its report, Dahlman Rose writes, "We are lowering our 2011 and 2012 EBITDA estimate to $31.3 Bn and $37.1 Bn from $33.1 Bn and $40.5 Bn to reflect the likely scenario of higher costs. We believe that the company has done a good job controlling cost inflation so far, but an increase is inevitable, in our opinion. As a result, we are adjusting our price target to $115 from $127, which is derived by applying a 6.5x EV/EBITDA multiple to our 2012 EBITDA estimate. We reiterate our Buy rating."

At the time of posting, shares of RIO were trading pre-market at $55, down 2.55% from Friday's close.