Citi analyst Ephrem Ravi downgraded Rio Tinto to Neutral from Buy with a price target of 5,800 GBp, down from 6,000 GBp, as he lowered his calendar year 2023 and 2024 EPS estimates by 11% and 6%, respectively, following the company’s Capital Markets Day. Rio shares are up 28% since the end of October amid a "market euphoria around potential China reopening," but Ravi thinks China reopening is a second half of 2023 event and in the meantime says there is a "sharp ex-China downturn" in steel production to navigate.
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