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.
19 Jan 2022 08:29
Centamin ends year in line with production forecasts
(Sharecast News) - Centamin reported annual gold production in line with expectations in its fourth quarter update on Wednesday, with 107,549 ounces produced in the three months ended 31 December, making for a 2021 total of 415,370 ounces for 2021, at the midpoint of its guidance.
Read more