MARKET TALK: Evolution Upgrades Rio Tinto To Buy From Add

2nd Jul 2010 12:03

1103 GMT [Dow Jones] Evolution Securities upgrades Rio Tinto (RIO.LN) to buy from add and raises its target price to 3590p from 3525p following the latest iteration of the proposed mineral resources tax in Australia. The new proposals indicate a 740p/share reduction in the brokerage's discounted cashflow valuation - equivalent to about $21.8B. Evolution notes the mining tax rate has been reduced to 30% from 40% and is now only focused on the iron ore and coat sector, with other commodities excluded. Evolution adds that the proposal now represents a worst-case scenario, as implementation is dependent on a Labour win in the forthcoming election. Shares +1.3% at 2944p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 02, 2010 07:03 ET (11:03 GMT)