LONDON (ShareCast) - (Sharecast News) - Deutsche Bank downgraded Rio Tinto on Friday to 'hold' from 'buy' and cut the price target to 5,100p from 5,300p following the first-result half results a day earlier and the recent iron ore-led rebound in the shares.
"The company is delivering consistently and, with a new CEO coming in soon, the bottom up story could become more interesting in the months ahead," said analyst Liam Fitzpatrick.

"We expect Simon Trott's initial focus to be on simplification, cost reductions and potential smaller asset sales," he said.

He added that while Rio remains the bank's preferred iron ore major, it sees downside risks to iron ore in the months ahead.

"Valuation multiples are undemanding, but not compelling due to more elevated investment levels (2026 spot EV/EBITDA of circa 5x, FCFy of 6-7%)," Fitzpatrick said.

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