Market Overview

UPDATE: Citigroup Upgrades Rio Tinto PLC to Buy on Management Changes, Valuation

Related RIO
Rio Tinto Announces Asset Sale For $224 Million, Notes Transaction Will 'Deliver Significant Value' For Shareholders
Barclays Downgrades BHP Billiton To Underweight, Assumes Co. Will Slash Dividend By 50%
Rally in mining stocks could set up "bull trap," some analysts say (Seeking Alpha)

Citigroup upgraded Rio Tinto PLC (NYSE: RIO) from Neutral to Buy.

Citigroup noted, "We believe the market will perceive today's write-downs and management changes negatively in the short term, but that these will be positive for the stock and the sector longer term. One of our structural bearish criticisms of the sector has been poor capital allocation, and lack of shareholder focus. We believe today's announcement could significantly realign Rio Tinto with shareholder interests through reduced M&A and reduced capex spend. Due to today's impairments, we have removed the large discount to NPV we previously applied for poor capital allocation (we now apply a 15% discount vs. 40% previously)."

Rio Tinto PLC closed at $55.03 on Wednesday.

Latest Ratings for RIO

Nov 2015BarclaysUpgradesEqual-weightOverweight
Oct 2015LiberiumDowngradesSell
Aug 2015AxiomInitiates Coverage onNeutral

View More Analyst Ratings for RIO
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings


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