Zacks Investment Research upgraded shares of Rio Tinto plc (RIO) from UNDERPERFORM to OUTPERFORM on November 21, 2013, with a target price of $63.00.
Rio Tinto reported higher production volumes for most of its commodities in the third quarter of 2013. Iron ore shipments increased 4% year over year and 11% sequentially to 68 million tonnes. The company's expansion projects are on track, with some projects commencing earlier than expected. The reduction of exploration and evaluation expense is also estimated to reach a level of $750 million in 2013, with $729 million already reduced in the first nine months of 2013. Rio Tinto is also making efforts to cut its costs, achieving a decline of 9% year over year in the first half of 2013. These efforts are expected to expand the company's liquidity position which can be utilized to reward shareholders. Based on these factors we are upgrading our recommendation on the stock to Outperform from Underperform.
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