Rio Tinto Group (RIO) Downgraded at Jefferies

Rio Tinto Group (NYSE:RIO) was downgraded by Jefferies from Buy to Hold, with a price objective of 4,600 GBp instead of 5,700 GBp.

Aerial view of an open pit mine, with workers extracting minerals.

In a research note, the analyst informs investors that the company’s strategic path is uncertain due to the news that Jakob Stausholm will be leaving his position as CEO of Rio Tinto Group (NYSE:RIO) later this year. Although the company is not skeptical about iron ore, Jefferies notes that it does believe that the price of iron ore will decline soon as a result of the growing trade tensions between the United States and China, the continued weakness in the Chinese real estate markets, the planned closures of Chinese steel capacity because of “structural problems,” and seasonal weakness.

Rio Tinto Group (NYSE:RIO) is a multinational mining company. The main commodities are iron ore, copper, aluminum, diamonds, gold, and industrial minerals, all of which contribute far less.

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Disclosure. None.