Rio Tinto price target raised to $80 from $72 at Argus

Argus analyst John Eade raised the firm’s price target on Rio Tinto to $80 from $72 and keeps a Buy rating on the shares. The firm believes Rio Tinto has strengthened its operating performance and balance sheet by cutting costs and selling noncore assets. It also continues to return cash to shareholders through dividends. Despite the recent drop in commodity prices, Argus notes that Rio has traditionally performed well during difficult economic times, and, in its view, has strong long-term growth opportunities. The firm also thinks the Rio ADRs offer value, trading at 10-times its 2023 EPS estimate, a sharp discount to the market.