Rio Tinto seen as ‘value opportunity’ at Argus

Argus keeps a Buy rating and $72 price target on Rio Tinto but names the stock a “value opportunity”. The company’s current yield of around 6.3% is attractive and signals value, while its current price-to-earnings ratio of 8-times is low as the stock should merit a premium multiple given its long-term record of industry outperformance, the analyst tells investors in a research note.