RTNTF - Rio Tinto: Improved Conditions Can Augur Well (Rating Upgrade)
2024-03-11 03:42:47 ET
Summary
- Much has changed for the miner Rio Tinto's stock in the past quarter, making it attractive again.
- It saw a significant earnings uptick in H2 2023 on improved iron ore prices and with forecasts for the commodity looking good, better times can be expected in 2024.
- Even after a dividend cut, the dividend yield looks good too, and a price correction has contributed to more competitive market multiples.
- A soft global economy can impact commodity demand, which in turn could affect Rio Tinto, but no alarm bells are going off to this extent right now.
An analysis of the iron ore miner Rio Tinto ( RIO ) is a very good example right now of just how much things can change in just a quarter to alter perspective on it. When I wrote about it the last time, in December 2023, there were clear signs that its price was due for a correction, prompting me to change my rating on it from Buy to Hold. And indeed, the correction has happened, with a 9% fall in its price since....
Rio Tinto: Improved Conditions Can Augur Well (Rating Upgrade)