Goldman Sachs Downgrades Rio Tinto (RIO) to Neutral

Earlier, Goldman Sachs downgraded Rio Tinto (NYSE: RIO) from Buy to Neutral after reducing earnings on lower commodity prices.

"Rio remains highly geared to the iron ore price with c.75% of EBITDA and c.90% of earnings coming from the iron ore division in the 1H12 interim results," the analyst notes. "Our cuts to the GS iron ore forecast for 2014 materially cut EBITDA and hence our price target. The assets in the Pilbara remain very high quality (likely the best in the world) but we believe the current share price accurately reflects its value."

Goldman lowered 2012/13/14 EPS estimates to US$4.74/US$5.68/US$5.77 from US$4.88/US$6.26/US$7.08 on lower commodity prices.

For an analyst ratings summary and ratings history on Rio Tinto click here. For more ratings news on Rio Tinto click here.

Shares of Rio Tinto closed at $48.69 yesterday.

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