RBC Tweaks Model for Rio Tinto After 'Clean' H1 Results

04:57 AM EDT, 07/30/2026 (MT Newswires) -- RBC Capital Markets adjusted its model for Rio Tinto Group (RIO.L) after the mining company published its first-half earnings. "We are updating our numbers [post-result] with small impacts to EBITDA, but better [cash flow] (2026E CFO +14%) and dividends (+6% to $4.64/sh for 2026E). Financials were a clean set of numbers with no major reveals (disposals and acquisitions likely to come in H2). Cost out of $1.8bn by year-end is an impressive target, but we worry about the indirect costs," according to a Wednesday note. For the six months ended June 30, Rio Tinto's consolidated sales revenue climbed to $31.03 billion from $26.87 billion a year ago, while profit attributable to owners rose to $6.66 billion from $4.53 billion. "Rio continues to target $5bn of asset sales in the second half. Borates - there has been progress in a healthy market, but will likely be far more challenging for mineral sands. Iron Ore Company of Canada, while not officially on the block (although has been many times before), would also be tricky to offload with weak Chinese steel mill profitability," analysts added. Against this backdrop, the research firm raised its adjusted EPS forecasts for full-year 2026 to 2028 to $8.43, $7.70 and $7.55, respectively, from $7.95, $7.65 and $7.50. RBC has an underperform rating and a price target of 61 pounds sterling on the stock.