RBC Upgrades Rio Tinto to Sector Perform Amid Less Downside Risk in Iron Ore Prices

08:20 AM EDT, 10/06/2026 (MT Newswires) -- RBC Capital Markets upgraded its rating on Rio Tinto Group (RIO.L) to sector perform, with a price target of 65 pounds sterling, citing less downside risk in iron ore prices amid rising freight rates. "Iron ore markets are seeing record seaborne volumes but Brazilian exports and other small producers (Chile, West Africa, etc) are in the process of shuttering production that should help tighten the market. Simandou is exporting at c.1mt per week, which is close to capacity of the current port system. The flipside is that Chinese domestic demand outlook remains very poor, port inventories are high and the latest round of Chinese stimulus proved to be a damp squib," analysts said Tuesday. The research firm also said that risks of expensive or complicated copper acquisitions look "more balanced," with the mining giant expected to announce a cash release of at least $5 billion in the fourth quarter related to infrastructure and disposals. "Rio Tinto has been the laggard of the diversified (ex Vale) at +19% YTD vs BHP & GLEN at +44%. From a valuation perspective, Rio PLC does not look as stretched as BHP, but Glencore could weigh on both, depending on the success of their Oz listing," analysts added.