MARKET TALK: S&P Equity Research Cuts Rio Tinto Price Target

21st Jun 2010 14:30

1330 GMT [Dow Jones] S&P Equity Research cuts Rio Tinto (RIO.LN) price target to 4000p from 4600p to reflect the impact of the proposed Australian Resource Super Profits Tax and lower sector multiples. The market has over-reacted to the tax, which if fully implemented, S&P reckons would lower group EPS by around 20% a year from '13. Notes there are many hurdles to overcome for the tax to be introduced. "Interestingly, our target price remains above current levels if we assume full Resource Super Profits Tax implementation, reflecting our view of Rio's strong market positions." Buy rating. Shares +4.8% at 3486p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 21, 2010 09:30 ET (13:30 GMT)