Morgan Stanley rates RIO as Equal-weight

Published: 2025-06-24 20:29:06 ET MS

Published on 06/24/2025 at 20:29

Morgan Stanley notes one-third of five replacement projects for Rio Tinto have been delivered in line with the broker's expectations.

Hope Downs 2 delivery is on track, with capex within the company's guidance and contracts for non-process facilities awarded last month, the analyst details.

The delivery of two other replacement projects, West Angelas and Nammuldi, remains a concern for Rio, Morgan Stanley notes, with both running behind schedule.

Rio also announced it intends to invest 50% of US$1.6bn with Hancock Prospecting to develop the Hope Downs 2 iron ore project as part of the replacement projects. First scheduled ore is expected in 2027, with approvals received.

Morgan Stanley retains an Equal-weight rating and a $119.50 target price. Industry View: In-line.

Sector: Materials.

Target price is $119.50.Current Price is $104.94. Difference: $14.56 - (brackets indicate current price is over target). If RIO meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).