Forecast Of The Day: Rio Tinto’s Copper Shipments

+31.68%
Upside
61.71
Market
81.26
Trefis
RIO: Rio Tinto logo
RIO
Rio Tinto

What? 

Rio Tinto’s (NYSE:RIO) copper shipments declined from around 837,000 tons in 2019 to 683,000 tons in 2020. Trefis expects the number to increase to about 750,000 tons in 2021 and about 760,000 tons in 2022.

Why?

Relevant Articles
  1. With Iron Ore Prices Volatile, Is Rio Tinto Stock Worth A Look?
  2. Will Rio Tinto Stock Continue Its Momentum?
  3. Rio Tinto’s Top Line To Retain Momentum In 2022?
  4. Company Of The Day: Rio Tinto
  5. Rio Tinto Stock Strengthens – Here’s Why
  6. What Is Ailing Rio Tinto Stock?

The demand for copper is broadly correlated with industrial growth and shipments saw a decline through 2020 as the Covid-19 related lockdowns resulted in a recession. However, with economies opening up, shipments are poised to trend higher.

So What?

We think the projected growth in demand isn’t fully priced into Rio stock just yet. We value the stock at about $100 per share, a premium of about 37% versus the current market price.

See Our Complete Analysis For Rio Tinto