Rio Tinto’s Iron Ore CEO forecasts Pilbara capital expenditure and unit costs will remain high in the medium term and that underlying demand will remain strong in 2022 as China steps in to prevent a hard landing in its property sector, says UBS.
China is expected to do the bare minimum to keep the market afloat, maintaining a keen eye to carbon targets.
Tight labour conditions persist.
UBS retains a Sell rating, noting the iron ore outlook remains fragile as port inventories build. $79 target price retained.
Sector: Materials.
Target price is $79.00.Current Price is $95.78. Difference: ($16.78) – (brackets indicate current price is over target). If RIO meets the UBS target it will return approximately -21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
