Rio Tinto: Eyes On The Future Post Glencore Talks, Solid Profit Outlook (Upgrade)

Rio Tinto is upgraded to a "Buy" as shares appear 15%-20% undervalued post-pullback, with technical support in play. Strong FY 2025 results featured 7% revenue growth, record bauxite output, and a 114% surge in copper EBITDA, offsetting iron ore weakness. Management targets a 3% CuEq production CAGR through 2030, maintains a disciplined $11 billion capex plan, and continues a robust 60% dividend payout ratio.