JPMorgan analyst Lyndon Fagan upgraded Rio Tinto to Overweight from Overweight with a price target of A$131, up from A$116. Iron ore prices “look well supported “on the back of resilient Chinese steel production, port restocking and recent policy easing, the analyst tells investors in a research note. The firm believes China steel cuts will be “aggressively implemented.” From an investment standpoint, the iron ore miners are JPMorgan’s preferred sub-sector within the Aussie metals and mining space. Its higher iron ore price scenario leads to the upgrade Rio Tinto, and the stock now becomes the firm’s top pick. Compared to BHP Group (BHP), Rio screens “slightly cheaper,” says JPMorgan.
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