MARKET TALK: Investec Securities Cuts Rio Tinto Target Price

17th Jun 2010 13:32

1232 GMT [Dow Jones] Investec Securities cuts Rio Tinto (RTP) target price to 4500p from 4750p. "We believe the company will generate strong free cashflow this year and forecast it will be in a net cash position by end 2011," Investec says. The brokerage reiterates the view that at its current level, Rio's shares offer compelling value, "trading on 7.0x our base case 2010 EPS forecast and just 6.1x when we use spot commodity prices." Shares +1.3% at 3381p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 17, 2010 08:32 ET (12:32 GMT)