The Rio Tinto Limited (ASX: RIO) share price edged higher in March 2022. But what's next for the ASX mining share in April?
Rio Tinto shares start the month at $119.11. The share price has gone up almost 20% in 2022 year to date, amid the strengthening of prices for many commodities.
The iron ore price remains around 50% higher compared to where it was at the start of November 2021. Iron ore remains a key profit generator for the company.
Without a working crystal ball, it's difficult to say what will happen to the miner this week, this month, or even this year. However, some analysts have given their opinions on what they think the ASX mining share could be worth in the future with their price targets.
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What do brokers think of the Rio Tinto share price?
UBS
The broker UBS, which has been negative on iron ore miners in recent times, has upgraded its rating on Rio Tinto from a sell to neutral. This change was because of the improving outlook for the iron ore price over the coming months.
UBS thinks that China could help continue the party for the iron ore price as the country looks to pursue growth. It now believes that the iron ore price in 2023 could be US$105 per tonne and US$135 per tonne in 2022.
Based on UBS numbers, the Rio Tinto share price is valued at under 7x FY22's estimated earnings and under 9x FY23's estimated earnings.
Morgan Stanley
The broker Morgan Stanley recently said that Reuters had reported that Guinea had reached a deal with miners to resume activities on the Simandou iron ore development, after resolving disputes relating to infrastructure. Rio Tinto is one of those miners.
Simandou has more than 4 billion tonnes of ore according to Guinea's government.
Morgan Stanley doesn't think it will be until 2028 when the first ore happens, though the Guinea government is hoping for 2025.
Morgan Stanley rates the Rio Tinto share price as a buy, with a price target of $130.50. That implies a potential upside of around 10%.
The broker is expecting another big year of cash flow and dividends from Rio Tinto. Morgan Stanley's numbers put the Rio Tino share price at 6x FY22's estimated earnings, with a grossed-up dividend yield of 18.4%.
Macquarie
Macquarie is one of the most positive brokers on Rio Tinto, with a buy rating and a price target of $140.
While the strength of iron ore is one part of Rio Tinto, Macquarie also points out that alumina prices have also gone up significantly, which is helping its thoughts about the underlying value of the ASX mining share.
Using Macquarie's numbers, the Rio Tinto share price is valued at 6x FY22's estimated earnings, with a grossed-up dividend yield of 15.3%.
Rio Tinto share price snapshot
The mining giant is starting the month with a market capitalisation of $43.4 billion, according to the ASX.
