Berenberg upgrades Rio Tinto, Centamin

The bank lifted Rio to ‘buy’ from ‘hold’ and upped the price target to 5,500p from 5,000p. "After a 25% relative underperformance versus BHP in 2021, we think that i) higher iron ore prices than consensus, ii) the benefit of index inflows following BHP’s exit from the FTSE 100, iii) net-underweight Chile, and iv) still-strong shareholder returns will lead the stock to outperform," it said

Berenberg also upped Centamin to ‘buy’ from ‘hold’ and increased the price target to 112p from 104p.

The bank said it was changing its rating after the pullback in the shares following the recent capital markets day, as it believes the gold miner is well positioned to meet new guidance, with upside potential from the Egyptian exploration portfolio.

"We remain more cautious on the company’s West African assets," it said, adding that Centamin retains a solid balance sheet and should produce 450koz-500koz over the longer term from Sukari.