Rio Tinto (NYSE:RIO) Upgraded to "Buy" at The Goldman Sachs Group

Key Points

• Goldman Sachs upgraded Rio Tinto to “Buy” from “Neutral,” although the broader analyst consensus remains “Hold,” with an average price target of $101.75.
• Rio Tinto shares rose 2.1% to $93.60, but the company’s latest quarterly results fell short of estimates, reporting $2.11 in EPS versus the $4.09 consensus and revenue of $15.51 billion versus $31.62 billion expected.
• Recent company news has been more positive, including a 47% increase in first-half profit, stronger cash flow, a 43% increase in the interim dividend, and growing contributions from copper, aluminum and lithium.

Rio Tinto (NYSE:RIO - Get Free Report) was upgraded by equities research analysts at The Goldman Sachs Group from a "neutral" rating to a "buy" rating in a research report issued on Wednesday.

RIO has been the topic of several other research reports. Royal Bank Of Canada cut shares of Rio Tinto from a "sector perform" rating to an "underperform" rating in a report on Wednesday, June 3rd. Weiss Ratings restated a "buy (b-)" rating on shares of Rio Tinto in a research report on Wednesday, May 20th. Zacks Research cut Rio Tinto from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 7th. Bank of America downgraded Rio Tinto from a "buy" rating to a "neutral" rating in a report on Friday, May 22nd. Finally, DZ Bank upgraded shares of Rio Tinto from a "hold" rating to a "strong-buy" rating in a research note on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $101.75.

Rio Tinto Trading Up 2.1%

Shares of NYSE RIO traded up $1.96 during midday trading on Wednesday, reaching $93.60. 2,417,756 shares of the company were exchanged, compared to its average volume of 3,211,249. Rio Tinto has a one year low of $58.40 and a one year high of $112.58. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.98 and a current ratio of 1.44. The stock's 50-day moving average price is $98.03 and its 200-day moving average price is $95.95.

Rio Tinto (NYSE:RIO - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The mining company reported $2.11 EPS for the quarter, missing analysts' consensus estimates of $4.09 by ($1.98). The company had revenue of $15.51 billion during the quarter, compared to the consensus estimate of $31.62 billion. As a group, research analysts predict that Rio Tinto will post 8.48 EPS for the current year.

Institutional Trading of Rio Tinto

A number of institutional investors have recently bought and sold shares of the stock. AdvisorNet Financial Inc lifted its position in shares of Rio Tinto by 160.2% in the 1st quarter. AdvisorNet Financial Inc now owns 294 shares of the mining company's stock worth $27,000 after purchasing an additional 181 shares during the period. PFS Partners LLC acquired a new position in shares of Rio Tinto in the 4th quarter valued at $28,000. Nvest Wealth Strategies Inc. acquired a new stake in Rio Tinto during the 4th quarter worth about $28,000. V Square Quantitative Management LLC purchased a new stake in Rio Tinto during the 1st quarter valued at about $35,000. Finally, Costello Asset Management INC purchased a new position in shares of Rio Tinto in the first quarter worth about $37,000. 19.33% of the stock is currently owned by institutional investors.

Key Stories Impacting Rio Tinto

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

• Positive Sentiment: Rio Tinto reported a 47% increase in first-half profit, helped by stronger commodity prices and higher production. Underlying EBITDA rose 28%, while free cash flow increased 75%, signaling improved operating performance and financial flexibility. Rio Tinto's First-Half Profit Rises 47%, Raises Interim Dividend
• Positive Sentiment: The company raised its interim dividend by 43% to US$2.11 per share, supported by stronger cash generation. The higher payout enhances RIO’s appeal to income-focused investors. Rio Tinto shares surge as copper growth drives profit and dividend beat
• Positive Sentiment: Copper earnings are increasingly narrowing the gap with iron ore, while management cited “extraordinary” metals demand from AI data centers. Copper, aluminum and lithium now account for more than half of the company’s production mix, improving diversification and exposure to energy-transition demand. Rio Tinto chief hails AI data centres for extraordinary demand for metals
• Positive Sentiment: Production increased 3% on a copper-equivalent basis, suggesting recent growth investment is beginning to deliver results. Rio Tinto: Step-change in performance delivering higher shareholder returns
• Neutral Sentiment: Analysts are comparing Rio Tinto’s lithium expansion strategy with Albemarle’s, highlighting long-term EV and energy-storage growth but also continued execution and commodity-price risks. ALB vs. RIO: Which Lithium Producer Deserves a Spot in Your Portfolio?
• Negative Sentiment: Management continues to address safety and operational issues. Separately, reported quarterly results showed earnings and revenue below consensus estimates, although those figures appear inconsistent with the stronger first-half company-reported headlines. Rio Tinto earnings report
• Negative Sentiment: Rio Tinto reportedly does not plan to make additional U.S. investment solely to obtain tariff discounts, limiting a potential near-term policy-related catalyst for its aluminum business. Aluminum Giant Rio Tinto Not Planning to Invest in U.S. For Tariff Discount

About Rio Tinto

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.