Rio Tinto downgraded to Hold from Buy at Jefferies

Jefferies downgraded Rio Tinto (RIO) to Hold from Buy with a price target of 4,600 GBp, down from 5,700 GBp. News that Jakob Stausholm is stepping down as Rio’s CEO later this year creates uncertainty about the company’s strategic direction, the analyst tells investors in a research note. Jefferies adds that while the firm is not bearish on iron ore, it also believes that the escalating trade tensions between the U.S. and China, ongoing weakness in the Chinese property markets, planned closures of Chinese steel capacity due to “structural problems”, and seasonal weakness will lead to the iron ore price drifting lower in the near term.