RIO – Macquarie rates the stock as Outperform

Macquarie has marked to market December quarter commodity prices and foreign exchange rates and remains positive on copper exposure going into 2021.

Copper has been a base metal outperformer since mid-2020 and the broker expects the trend to continue into 2021 on global stimulus and electrification. In addition, Chinese demand is remaining buoyant and the ex-China stimulus is ramping up.

While copper is a positive contributor to earnings and accounts for 9% of net present value (NPV) for Rio Tinto, the major driver for the diversified miner remains buoyant iron ore prices.

The Outperform rating and target of $127 are unchanged.

Sector: Materials.


Target price is $127.00.Current Price is $120.52. Difference: $6.48 – (brackets indicate current price is over target). If RIO meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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