Goldman Sachs - RIO added to buy conviction list

"Goldman Sachs has added several stocks this year to its conviction list — buy-rated stocks that it expects to outperform — giving them and share price an upward trajectory. Rio Tinto Its most recent addition was Australian miner Rio Tinto on March 3. It comes as Goldman Sachs turns bullish on commodities like iron ore due to an expected recovery in China. The bank’s analysts said in a March 3 note that it recently raised its iron ore price forecast to $120 per metric ton from $100, on an expected improvement in Chinese steel volumes, among other factors. He also noted the recent ongoing recovery in property sales in China. “Starts are generally led by asset sales, which drives higher steel demand,” the analysts wrote. “Moreover, these dynamics are playing out, while iron ore inventories at Chinese steel mills are at their lowest levels since 2016, with mills having begun to restock in recent weeks.” Goldman said it added Rio Tinto to its conviction list due to its “compelling” relative valuation relative to its peers, strong free cash flow, dividend yield, and the bank’s “bullish view” on iron ore, aluminum and copper prices. couple. That gave Rio Tinto a price target of $140, or 10% upside from Friday’s close. "

(Goldman Sachs adds commodities firm to its conviction buy list - CNBC - Business News (crast.net) )

This year will be a really interesting one for RIO given their recent acquisitions ahead of possible rising iron ore, aluminum and particularly copper prices. Well positioned to take advantage of those acquisitions I feel, likely beef up the bottom line considerably.