Last checked at (Sharecast News) - Berenberg upgraded Rio Tinto and Centamin on Friday as it took a look at the metals and mining sector.
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.
27 May 2021 09:04
Centamin upbeat on results of West Africa portfolio review
(Sharecast News) - Centamin announced the results of its review of its West African exploration portfolio, following which it has approved the start of a pre-feasibility study at Doropo, a further exploration programme at ABC, and a review of the third-party development options at Batie West.
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