Morgans assesses Rio Tinto reported a soft second quarter operational result across key divisions, with lower iron ore, copper and bauxite production. The broker maintains its Hold rating and lowers its target price to $120 from $121.
Material tightness in the WA labour market and an exceptional inflationary environment were the major contributors to the weaker Pilbara performance, notes the analyst.
While a disappointing result, the market remains more focused in the short term on the ongoing robust spot iron ore price, explains Morgans.
Sector: Materials.
Target price is $120.00.Current Price is $130.60. Difference: ($10.60) – (brackets indicate current price is over target). If RIO meets the Morgans target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
