Barclays upgrades Rio Tinto on improving iron ore outlook

Barclays has upgraded mining group Rio Tinto from ‘neutral’ to ‘overweight’ after taking a more positive view on iron ore.

After a week spent in China, with over 20 meetings with local miners, traders, developers and economists, Barclays said the industry “remains resilient”.

Rio Tinto is one of the world's leading producers of iron ore, operating 17 mines, four port terminals and a rail network in the Pilbara region of Western Australia.

“More pain looks set to come in the real estate market, but manufacturing has surprised to the upside. We become more positive on pig iron output into 2024, which can support iron ore prices,” the bank said.

Barclays has kept its 6,300p target price unchanged for the stock, which up nearly 2% at 4,975p on Tuesday morning.