Credit Suisse Reiterates Outperform Rating on Rio Tinto plc Following Recent Catalyst List Updates

In a report published Friday, Credit Suisse analyst James Gurry reiterated an Outperform rating on Rio Tinto plc RIO. In the report, Credit Suisse noted, “Investors seem happy to buy Rio if iron ore prices are not going to drop to $80/t and stay there. Last week in ‘The Return of "Fundamentals', we refreshed our pricing outlook concluding that unlike 2012, an iron ore destocking price rout is not upon us. We still expect iron ore price declines as Chinese steel production growth rates slow but forecast avg prices of$105/t and $100/t over Q3/Q4, with dips below at times. With Rio shares pricing $80/t into perpetuity, a strong balance sheet and a catalyst rich outlook, we think share price weakness should be seen as a buying opportunity.” Rio Tinto plc closed on Wednesday at $40.46.