Rio Tinto price target lowered to 5,400 GBp from 5,500 GBp at RBC Capital

RBC Capital lowered the firm’s price target on Rio Tinto (RIO) to 5,400 GBp from 5,500 GBp and keeps a Sector Perform rating on the shares after the company’s Investor Day presentation. The event’s clear focus was on growth, with the target of 3% CAGR production growth now stretching to 2033 from 2028 following the inclusion of the lithium projects, the analyst tells investors in a research note. Rio also offered maiden FY25 guidance, resulting in negative FY25 EPS and free cash flow revisions on lower iron ore, copper and alumina volumes and higher FY25/26 capex, RBC added.