Broker snap: Credit Suisse singles out Rio as preferred large cap

28th Nov 2012 13:26

In a report on the mining sector, Credit Suisse has singled out Rio Tinto for its growth potential, keeping its 'outperform' rating for the stock with a price target of 3,500p.Analysts at the Swiss broker labelled Rio Tinto as the preferred large cap company for the first half of 2013, pointing to leading growth driven by the start-up of massive iron ore growth projects from late 2013 and recovery from its copper mines."Our analysis shows that while prices are the dominant driver of overall sector performance, volume growth is an important driver of relative stock performance," they explained.Credit Suisse went on to explain that large caps provide the best risk-reward on growth delivery and cash flows and that "investors should remain underweight companies with low or long dated growth and weak cash flows."Shares of Rio Tinto were down 0.32% to 2,970p during mid-day trading on Wednesday.MJ