Investing.com -- Shares in Rio Tinto (NYSE:RIO) fell 2% in U.S. premarket trading Tuesday after Jefferies lowered its rating on the mining giant to Hold from Buy, citing a more balanced risk/reward pr
Investing.com -- Shares in Rio Tinto (NYSE:RIO) fell 2% in U.S. premarket trading Tuesday after Jefferies lowered its rating on the mining giant to Hold from Buy, citing a more balanced risk/reward profile amid a series of emerging headwinds.
The brokerage cut its price targets across listings, with the Rio Plc target lowered from 5,700p to 4,600p and the Rio Ltd target from A$147 to A$115.
“We do not believe that Rio (or BHP) is ‘broken’. We just consider the risk/reward tradeoff to be more balanced following recent developments,” analysts led by Christopher LaFemina.
One of the key concerns is the uncertainty surrounding the company’s strategic direction following the announcement that CEO Jakob Stausholm will step down later this year.
The analysts noted that potential successors—including Simon Trott, Jérôme Pécresse, and Bold Baatar—bring different implications for future strategy, including M&A potential.
“Until the new CEO is announced, the strategic direction of Rio will be a risk,” the analysts noted.
Jefferies also flags growing concerns around Rio’s lithium investments. While seen as countercyclical, these projects carry risks of “rising capital intensity and potentially low returns” if demand fails to meet Rio’s expectations.
As spending increases, near-term free cash flow (FCF) could be negatively affected without a corresponding boost in earnings, the analysts said.
The team is also cautious on iron ore, which accounts for over 70% of Rio’s net present value. The analysts expect the price to ease in the near term, citing trade tensions between the U.S. and China, structural steel capacity cuts in China, and seasonal weakness.
“We model $90/t in 3Q vs current spot of $95/t,” they wrote, with a long-term forecast in the $80–90/t range.
“A lower iron ore price is negative for Rio,” the analysts added.
As for the political landscape, Jefferies points out that U.S. tariffs on Canadian aluminum, a key production region for Rio, could reduce profitability despite potential gains in regional pricing.
Meanwhile, political developments in Mongolia may complicate operations at the Oyu Tolgoi project, though Jefferies’ base case assumes no major disruption.
In the mining sector, Jefferies now favors Glencore (OTC:GLNCY), Anglo American (JO:AGLJ), and Vale SA ADR (NYSE:VALE) over Rio Tinto and BHP Group Ltd (ASX:BHP), citing better positioning with respect to capital allocation and geopolitical exposure.
This article first appeared in Investing.com
Investing | Tue, Jun 03 2025 08:43 PM AEST
Kalkine Pty Ltd. SYDNEY, NEW SOUTH WALES, AUSTRALIA, June 2, 2025 /EINPresswire.com/ -- Kalkine Australia recently launched its “The Funds Report”, a research-driven publication that provides structur...
Cision | Tue, Jun 03 2025 12:14 PM AEST
SYDNEY, NEW SOUTH WALES, AUSTRALIA, June 2, 2025 /EINPresswire.com/ -- Kalkine Australia recently launched its “The Funds Report”, a research-driven publication that provides structured, objective rankings of Managed funds and exchange-traded funds (ETFs) listed on the Australian Securities Exchange (ASX). Developed by Kalkine’s in-house research team, the report is designed to help subscribers better understand and compare fund performance through a consistent, data-driven framework.
Kalkine’s The Funds Report delivers objective ranking of Managed funds and ETFs based on a defined set of performance, risk, and cost metrics. This allows users to make informed decisions by reviewing how various funds stack up against each other across key indicators.
Source: Kalkine Pty Ltd
Data-Driven Fund Ranking Based on Key Metrics
The report evaluates and ranks funds based on several quantifiable performance measures, including but not limited to the metrics below:
• Alpha generation – Fund performance relative to benchmark indexes.
• Sharpe ratio – Risk-adjusted returns assessing reward per unit of risk.
• Three-year annualised returns – Historical performance over a meaningful timeframe.
• Total expense ratio – Cost efficiency over time.
ASX listed Managed Funds or Exchange Traded Funds are grouped by thematic categories, enabling subscribers to easily identify and compare funds aligned with specific investment strategies or market sectors. This objective approach enhances transparency in fund evaluation.
Comprehensive Insights to Navigate the Australian Fund Market
Kalkine Australia’s The Funds Report provides extensive analysis of Australian fund performance, helping users navigate the growing variety of options available on the ASX. Features include:
• Regular Updates on New and Sector-Specific Funds: Stay informed about recent listings and sector specific funds.
• Detailed Performance Breakdown: Analysis across equities, fixed income, and alternative asset classes.
• Risk and Return Profiles: Clear insights into risk-adjusted returns to support balanced investment information.
• Fund Comparison Tools: Side-by-side comparison covering historical returns, fees, asset allocation, and investment styles.
• Thematic Categorization: Organized by market themes and strategies to analyze diversified and trending investment areas.
A Comparative Resource
Kalkine Australia’s The Funds Report is designed to assist both individual investors and financial professionals seeking a clear and structured way to compare ASX-listed funds. The report ranks the funds based on scores derived and offers valuable data and insights to complement comprehensive due diligence and research.
About Kalkine
Kalkine operates globally, providing an independent equity research services across Australia, the United States, the United Kingdom, Canada, India, and New Zealand. Kalkine Pty Ltd delivers technology-driven, timely financial research to its subscribers. Its unique engagement model ensures high-impact content and deeper insights, maintaining its position as a player in accessible financial research.
For more information or to subscribe, visit: https://www.kalkine.com.au
Vivek Samnotra
Kalkine Pty Ltd.
+61290559490 ext.
info@kalkine.com.au
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Steven Selikoff presenting at Outstanding Vietnam conference Steven Selikoff sharing 'Pro Tips' so that suppliers will better serve buyers. Steven Selikoff speaking with Young Liu, Head of Vietnam Bus...
EIN Presswire | Thu, May 29 2025 04:10 PM AEST
HO CHI MINH CITY, HO CHI MINH CITY, VIETNAM, May 29, 2025 /EINPresswire.com/ -- Steven Selikoff, renowned entrepreneur, founder of the Product Development Academy, and author of The Complete Book of Product Design, Development, Manufacturing and Sales, captivated audiences at the Outstanding Vietnam Conference with his dynamic keynote presentation, “The Buyer’s Journey.”
The conference, hosted by Alibaba.com and the Investment and Trade Promotion Center of Ho Chi Minh City (ITPC), is a premier event dedicated to fostering business connections, promoting international trade, and showcasing Vietnam’s vibrant entrepreneurial landscape. Alibaba.com, the world’s leading online B2B marketplace, empowers suppliers and buyers to connect globally, while ITPC, a key governmental organization, facilitates trade and investment in Vietnam, driving economic growth and international partnerships.
Selikoff’s keynote, filled with real-life anecdotes and humor, resonated deeply with attendees, offering invaluable insights into the process of e-commerce and retail product buyers finding and hiring suppliers. His central theme emphasized the importance of supplier partnerships in helping buyers build stronger businesses, shifting the traditional transactional model toward a more collaborative and success-driven approach. By fostering trust, communication, and shared business objectives, suppliers can empower buyers to scale effectively, gain confidence, and thrive in competitive markets.
“Success for product entrepreneurs isn’t just about finding a supplier—it’s about forming a partnership that drives growth and prosperity for both sides,” said Selikoff. “Vietnamese suppliers, along with the support of Alibaba.com and ITPC, provide the powerful partnerships that buyers want and need for strong businesses.”
The Outstanding Vietnam Conference brought together industry leaders, entrepreneurs, and innovators from across the globe, providing a platform for knowledge sharing and business expansion. Selikoff’s presentation served as a highlight of the event, inspiring suppliers and buyers alike to embrace a collaborative mindset in global commerce.
For more information about Steven Selikoff, the Product Development Academy, and his groundbreaking work in creating the WTP Product Development Model, visit ProductDevelopmentAcademy.com.
Steven Selikoff
Product Development Academy
email us here
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