Here’s how top brokers think the Rio Tinto share price will perform in April

Rio Tinto shares edged higher in March. What’s in store for April?

| More on:
Miner on his tablet next to a mine site.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Rio Tinto shares rose slightly in March. What could happen in April? 
  • Some brokers have recently given their thoughts on the iron ore mining giant 
  • Macquarie is one of the most optimistic brokers, with a price target of $140 on Rio Tinto 

The Rio Tinto Limited (ASX: RIO) share price edged higher in March 2022. But what’s next for the ASX mining share in April?

Rio Tinto shares start the month at $119.11. The share price has gone up almost 20% in 2022 year to date, amid the strengthening of prices for many commodities.

The iron ore price remains around 50% higher compared to where it was at the start of November 2021. Iron ore remains a key profit generator for the company.

Without a working crystal ball, it’s difficult to say what will happen to the miner this week, this month, or even this year. However, some analysts have given their opinions on what they think the ASX mining share could be worth in the future with their price targets.

What do brokers think of the Rio Tinto share price?

UBS

The broker UBS, which has been negative on iron ore miners in recent times, has upgraded its rating on Rio Tinto from a sell to neutral. This change was because of the improving outlook for the iron ore price over the coming months.

UBS thinks that China could help continue the party for the iron ore price as the country looks to pursue growth. It now believes that the iron ore price in 2023 could be US$105 per tonne and US$135 per tonne in 2022.

Based on UBS numbers, the Rio Tinto share price is valued at under 7x FY22’s estimated earnings and under 9x FY23’s estimated earnings.

Morgan Stanley

The broker Morgan Stanley recently said that Reuters had reported that Guinea had reached a deal with miners to resume activities on the Simandou iron ore development, after resolving disputes relating to infrastructure. Rio Tinto is one of those miners.

Simandou has more than 4 billion tonnes of ore according to Guinea’s government.

Morgan Stanley doesn’t think it will be until 2028 when the first ore happens, though the Guinea government is hoping for 2025.

Morgan Stanley rates the Rio Tinto share price as a buy, with a price target of $130.50. That implies a potential upside of around 10%.

The broker is expecting another big year of cash flow and dividends from Rio Tinto. Morgan Stanley’s numbers put the Rio Tino share price at 6x FY22’s estimated earnings, with a grossed-up dividend yield of 18.4%.

Macquarie

Macquarie is one of the most positive brokers on Rio Tinto, with a buy rating and a price target of $140.

While the strength of iron ore is one part of Rio Tinto, Macquarie also points out that alumina prices have also gone up significantly, which is helping its thoughts about the underlying value of the ASX mining share.

Using Macquarie’s numbers, the Rio Tinto share price is valued at 6x FY22’s estimated earnings, with a grossed-up dividend yield of 15.3%.

Rio Tinto share price snapshot

The mining giant is starting the month with a market capitalisation of $43.4 billion, according to the ASX.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

happy investor, share price rise, increase, up
Small Cap Shares

2 exciting small cap ASX shares to buy according to brokers

These small cap ASX shares have been named as buys by brokers...

Read more »

A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers are feeling positive about these ASX shares...

Read more »

A group of five people dressed in black business suits scrabble in a flurry of banknotes that are whirling around them, some in the air, others on the ground as some of them bend to pick up the money.
Technology Shares

2 ASX tech shares about to go cash-flow positive

After massive interest rate rises, using your own cash to operate is so much better than borrowing to survive.

Read more »

A woman sits on a step laughing at something on her mobile phone as it is being charged by a lithium-powered battery.
Materials Shares

Up 30% in a month, can the Pilbara Minerals share price keep rising?

Is this lithium share going to keep rising?

Read more »

Group of thoughtful business people with eyeglasses reading documents in the office.
Broker Notes

Up 12% in 30 days, is the Westpac share price still a buy?

The banking giant's shares could still offer a notable upside, according to these brokers.

Read more »

Two men cheering at laptop
Broker Notes

2 ASX shares that Morgans would buy after excellent results

Experts have dissected the reporting season and reckon this pair of stocks look great for the future.

Read more »

A white and black clock with the words Time to Buy in blue lettering representing the views of two experts who say it's time to buy these ASX shares
Broker Notes

Brokers name 3 ASX shares to buy today

Brokers are bullish on these ASX shares...

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Broker Notes

Could the ANZ share price really offer more than 20% upside?

Brokers tip the ANZ share price will regain its first-half losses and then some.

Read more »