Erste Group Bank Forecasts Reduced Earnings for Rio Tinto

Key Points

• Erste Group Bank lowered its FY2026 EPS forecast for Rio Tinto to $8.34 from $8.45, slightly below the $8.37 consensus estimate. The bank projects FY2027 EPS of $8.27.
• Analyst sentiment remains mixed, with Rio Tinto carrying a consensus “Hold” rating and a $105.50 price target. Recent actions ranged from upgrades by Bernstein and DZ Bank to downgrades by Zacks Research and Bank of America.
• Rio Tinto shares opened at $93.75, below their 50-day and 200-day moving averages, while institutional investors and hedge funds own approximately 19.33% of the stock.

Rio Tinto PLC (NYSE:RIO - Free Report) - Investment analysts at Erste Group Bank cut their FY2026 earnings per share (EPS) estimates for Rio Tinto in a research note issued on Monday, July 27th. Erste Group Bank analyst S. Lingnau now expects that the mining company will post earnings of $8.34 per share for the year, down from their previous forecast of $8.45. The consensus estimate for Rio Tinto's current full-year earnings is $8.37 per share. Erste Group Bank also issued estimates for Rio Tinto's FY2027 earnings at $8.27 EPS.

RIO has been the topic of several other research reports. Sanford C. Bernstein raised their price objective on Rio Tinto from $82.00 to $83.50 and gave the stock an "outperform" rating in a report on Monday, April 27th. Argus set a $120.00 price objective on Rio Tinto in a research report on Monday, April 27th. Zacks Research cut Rio Tinto from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 7th. Bank of America cut Rio Tinto from a "buy" rating to a "neutral" rating in a report on Friday, May 22nd. Finally, DZ Bank raised Rio Tinto from a "hold" rating to a "strong-buy" rating in a research note on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $105.50.

Rio Tinto Price Performance

Shares of Rio Tinto stock opened at $93.75 on Thursday. The company has a current ratio of 1.44, a quick ratio of 0.98 and a debt-to-equity ratio of 0.33. Rio Tinto has a 52 week low of $58.40 and a 52 week high of $112.58. The firm's 50 day moving average is $97.84 and its two-hundred day moving average is $96.02.

Hedge Funds Weigh In On Rio Tinto

A number of hedge funds have recently made changes to their positions in RIO. Cubist Systematic Strategies LLC purchased a new stake in Rio Tinto during the first quarter valued at about $84,000. AQR Capital Management LLC lifted its position in Rio Tinto by 78.4% during the first quarter. AQR Capital Management LLC now owns 12,087 shares of the mining company's stock valued at $726,000 after buying an additional 5,310 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Rio Tinto by 20.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,485 shares of the mining company's stock worth $690,000 after acquiring an additional 1,968 shares in the last quarter. Empowered Funds LLC lifted its holdings in shares of Rio Tinto by 5.8% during the 1st quarter. Empowered Funds LLC now owns 5,280 shares of the mining company's stock valued at $317,000 after acquiring an additional 288 shares in the last quarter. Finally, Focus Partners Wealth raised its position in Rio Tinto by 16.7% in the first quarter. Focus Partners Wealth now owns 15,985 shares of the mining company's stock valued at $962,000 after purchasing an additional 2,285 shares during the period. Institutional investors and hedge funds own 19.33% of the company's stock.

More Rio Tinto News

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

• Positive Sentiment: Strong first-half earnings: Rio Tinto reported its highest first-half earnings in four years, with profit increasing about 47% year over year. Higher commodity prices and improved production supported a 28% increase in underlying EBITDA. Rio Tinto posts highest H1 earnings in four years
• Positive Sentiment: Higher cash returns: Free cash flow rose 75%, enabling Rio Tinto to raise its interim dividend by 43% to approximately $2.11 per share. The combination of stronger cash generation and shareholder distributions is supporting the stock’s appeal to income-focused investors. Rio Tinto's First-Half Profit Rises
• Positive Sentiment: Copper and diversification gains: Copper earnings helped narrow the performance gap with iron ore, while copper-equivalent production increased 3%. Management also highlighted potential long-term demand from data centers and artificial-intelligence infrastructure. Rio Tinto chief hails AI data centres
• Positive Sentiment: Goldman Sachs upgrade: Goldman raised Rio Tinto from “Neutral” to “Buy,” citing the company’s accelerating portfolio-simplification strategy. The upgrade adds institutional support following the earnings release. Rio Tinto raised to Buy at Goldman
• Neutral Sentiment: Execution remains important: Management continues to navigate safety and operational challenges, while Rio Tinto’s results remain exposed to fluctuations in iron ore, copper, aluminum and lithium prices. Rio Tinto Half Year 2026 Earnings Call Highlights

Rio Tinto Company Profile

Rio Tinto is a global mining and metals company that explores for, mines, processes and markets a wide range of commodities. Its principal products include iron ore, aluminum, copper, diamonds and various other minerals and industrial materials. The company's activities span the full value chain from exploration and project development to mining, processing, smelting and refining, supplying raw materials to industries such as steelmaking, automotive, packaging, electronics and construction.

The origins of Rio Tinto date back to mining operations in the Rio Tinto region of Spain in the 19th century, and the group has since grown into a multinational enterprise.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.