Rio Tinto PLC (NYSE:RIO) Stock Has Consensus Target Price of $101.62 According to Analysts

Key Points

• Analysts maintain a “Hold” consensus on Rio Tinto, with 13 hold, four buy, one strong-buy and one sell rating. The average 12-month price target is $101.62, above the cited $83.37 share price.
• Rio Tinto approved a $1.9 billion Kangwinan bauxite project in Queensland, expected to add 20 million tonnes of annual capacity and begin production in 2029. The investment supports long-term supply but increases near-term capital spending.
• Near-term sentiment remains pressured by weaker iron ore prices and softer earnings expectations, potentially offsetting the benefits of the bauxite expansion. The stock has traded between $67.74 and $112.58 over the past year.

Rio Tinto PLC (NYSE:RIO - Get Free Report) has been assigned a consensus recommendation of "Hold" from the nineteen ratings firms that are currently covering the firm, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, thirteen have assigned a hold recommendation, four have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $101.62.

A number of analysts recently weighed in on RIO shares. Citigroup restated a "neutral" rating on shares of Rio Tinto in a report on Tuesday, October 13th. The Goldman Sachs Group raised Rio Tinto from a "neutral" rating to a "buy" rating in a research report on Wednesday, July 29th. UBS Group reaffirmed a "neutral" rating on shares of Rio Tinto in a report on Thursday, July 30th. Weiss Ratings raised Rio Tinto from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, July 30th. Finally, Morgan Stanley initiated coverage on Rio Tinto in a research report on Monday, August 24th. They issued an "underweight" rating and a $90.00 price target on the stock.

Trending Headlines about Rio Tinto

Here are the key news stories impacting Rio Tinto this week:

• Positive Sentiment: Rio Tinto approved a $1.9 billion investment in the Kangwinan bauxite project in Queensland. The brownfield expansion is expected to add 20 million tonnes of annual capacity, use existing Weipa infrastructure, extend the life of the operation and support first production in 2029, with full output targeted for 2032. The project strengthens Rio Tinto’s long-term bauxite supply and customer relationships. Rio Tinto to invest $1.9 billion to develop the Kangwinan bauxite project
• Positive Sentiment: The Kangwinan development provides a long-term replacement and expansion pathway for Rio Tinto’s aging Queensland bauxite operations. While the spending increases near-term capital requirements, investors may view the project positively because it leverages existing assets and helps preserve production beyond the current mine life. Rio Tinto commits $1.9bn for Queensland’s Kangwinan bauxite project
• Neutral Sentiment: Canada’s government is scheduled to announce a Strategic Response Fund investment involving Rio Tinto Alcan and Aluminerie Alouette to support low-carbon aluminum production. The potential funding could help Rio’s decarbonization efforts, but the financial details and direct benefit to Rio Tinto were not yet disclosed. Media advisory on Strategic Response Fund investment
• Neutral Sentiment: Thiess secured five-year mining contracts at Mongolia’s Oyu Tolgoi and Ukhaa Khudag mines. The Oyu Tolgoi work is relevant to Rio Tinto as the mine’s operator, but the announcement concerns Thiess’s contracts and does not indicate an immediate change to Rio Tinto’s financial outlook. Thiess secures two five-year mining contracts in Mongolia
• Negative Sentiment: Rio Tinto and other major miners have been pressured by weaker iron ore prices, concerns about global capital expenditure and softer earnings expectations. This sector-wide commodity weakness is the primary near-term headwind for RIO, potentially offsetting the longer-term benefits of the bauxite expansion. BHP, Rio Tinto and Fortescue hit multi-month lows

Rio Tinto Stock Performance

RIO stock opened at $83.37 on Friday. The company has a fifty day moving average price of $96.97 and a 200-day moving average price of $98.35. The company has a quick ratio of 0.93, a current ratio of 1.42 and a debt-to-equity ratio of 0.29. Rio Tinto has a 52-week low of $67.74 and a 52-week high of $112.58.

Rio Tinto Dividend Announcement

The business also recently disclosed a dividend, which was paid on Thursday, September 24th. Stockholders of record on Friday, August 14th were given a dividend of $2.11 per share. This represents a dividend yield of 441.0%. The ex-dividend date was Friday, August 14th.

Institutional Trading of Rio Tinto

Several institutional investors have recently added to or reduced their stakes in the stock. Altshuler Shaham Ltd bought a new stake in Rio Tinto in the first quarter valued at $106,724,000. Renaissance Technologies LLC raised its holdings in shares of Rio Tinto by 417.6% during the first quarter. Renaissance Technologies LLC now owns 965,800 shares of the mining company's stock valued at $90,099,000 after purchasing an additional 779,200 shares during the period. Bank of America Corp DE raised its holdings in shares of Rio Tinto by 6.6% during the first quarter. Bank of America Corp DE now owns 3,623,294 shares of the mining company's stock valued at $338,017,000 after purchasing an additional 225,016 shares during the period. Cidel Asset Management Inc. boosted its position in shares of Rio Tinto by 101.1% during the 2nd quarter. Cidel Asset Management Inc. now owns 241,718 shares of the mining company's stock worth $22,946,000 after purchasing an additional 121,537 shares in the last quarter. Finally, SummitTX Capital L.P. boosted its position in shares of Rio Tinto by 207.9% during the 1st quarter. SummitTX Capital L.P. now owns 113,025 shares of the mining company's stock worth $10,544,000 after purchasing an additional 76,322 shares in the last quarter. 19.33% of the stock is currently owned by institutional investors.

Rio Tinto Company Profile

Rio Tinto plc is a diversified mining and metals company with operations and projects spanning multiple continents. Its principal products include iron ore, aluminum, copper, lithium, borates and titanium dioxide, which are supplied to customers in the steel, construction, automotive, technology and manufacturing industries.

The company explores for, mines, processes and transports mineral resources, while also operating related infrastructure such as railways, ports, smelters and processing facilities.

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