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The Expert View: Tesco, Schroders and Next
by Chris Marshall on Jan 06, 2014 at 05:01
Rio to suffer from iron ore price decline
Anticipating a sharp decline in the price of iron ore this year, analysts at S&P Capital IQ, say investors should sell Rio Tinto (RIO.L) shares.
Analyst Johnson Imode’s negative take on Rio clashes with the growing positive sentiment towards the shares after 2013’s poor performance.
He expects a 19% decline in the price of iron ore, Rio’s primary money-spinner. ‘Altogether, with China’s December iron ore stocks at their highest since October 2012, we see few positive catalysts for iron ore in 2014 post potential Q1 support from weather and the Chinese New Year.’
Imode expects the shares to drop to £27.00 from Friday's closing price of £33.70, flat on the day.
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- Tesco PLC (TSCO.L)
- Arrow Global Group PLC (ARWA.L)
- Rio Tinto PLC (RIO.L)
- Next PLC (NXT.L)
- Schroders PLC (SDRt.L)
- Hargreaves Lansdown PLC (HRGV.L)
- Aberdeen Asset Management PLC (ADN.L)