Rio Tinto Best Bet for Those Constructive Iron Ore, Cautious Copper, Bull Says

Dow Jones
60 mins ago

0001 GMT - Rio Tinto is the cleanest way to be long iron ore and cautious on copper while keeping exposure to growth in the base metal, Macquarie says. It upgrades the stock to outperform from neutral. "Rio is still iron-ore anchored (circa 50% of segment earnings for CY27), so it captures our view on a near-term recovery in the commodity, but it also has genuine, growing copper exposure," says the bank. Copper accounted for roughly 27% of group Ebitda in 2025, and could rise to about 36% by the end of the decade, it says. "Critically, it [Rio] has lagged BHP by circa 20% year to date, so investors buy iron ore leverage plus copper growth without paying BHP's copper 'tourist' premium," Macquarie says. It keeps a neutral rating on BHP.

 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10