RIO has performed better than BHP in the last three weeks, but year-to-date, it is still around 5% behind in the head-to-head race. With a higher portion of its revenue coming from iron ore, moving forward, it’s likely to be more sensitive to the price of the bulk commodity, which remains firm in the face of numerous bears. As we said recently, a push above $US110/MT might force some analysts into begrudging upgrades.
- We are still targeting the $125-130 area for RIO as iron ore edges towards $US110/MT, but we prefer BHP due to its commodity mix.
MM is bullish towards RIO
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