Rio Tinto Copper Prospects Ignite Buy Signal
Rio Tinto shares have had a strong run, but one analyst believes there is still value in buying now. The company's future growth prospects are not as exciting as its current price suggests, according to this expert.
At around $178.04 per share, Rio Tinto is trading at just under 15 times forecast earnings for FY26 and FY27. Analysts expect the company to earn $12.07 in FY26 and $12.04 in FY27.
The business case for Rio Tinto is shifting towards its copper operations, particularly Oyu Tolgoi in Mongolia. This mine is expected to become one of the world's largest copper mines, giving the company a significant source of additional production without relying on rising copper prices.
Investors can expect fully-franked dividends of $6.64 per share in FY26 and $6.62 in FY27. The analyst believes that receiving these substantial dividends while Rio Tinto develops its copper operations makes holding the shares appealing.