The Rio Tinto Ltd (ASX: RIO) share price is pushing higher again on Wednesday.
In afternoon trade, the mining giant's shares are up 0.5% to $117.81.
Why is the Rio Tinto share price rising?
Investors have been buying the miner's shares after brokers responded positively to yesterday's quarterly update.
For example, the team at Citi highlights that its update "shows continuing improved operational performance."
This sentiment was echoed over at Goldman Sachs, with its analysts noting Rio Tinto's "strong operational result across Fe, Cu and Al."
In light of this, it will come as no surprise to learn that both brokers have reiterated their buy ratings this morning.
What is Citi saying?
According to the note, Citi has retained its buy rating and $124 price target on the company's shares.
While this only implies a potential upside of 5.2% from current levels, the broker is also expecting a 5.2% dividend yield over the next 12 months. This brings the total potential return beyond 10%.
The broker commented:
RIO remains attractive on valuation metrics vs peers on 4.4x FY25 EV/EBITDA and ~0.9x P/NPV. We maintain our Buy rating and $124 TP.
What about Goldman?
Goldman's analysts see scope for the Rio Tinto share price to rise a little bit further than what Citi is predicting.
According to the note, the broker has retained its buy rating with a $126.50 price target. This suggests a potential upside of 7.3% from current levels.
In addition, Goldman is also forecasting a fully franked dividend yield of ~5% over the next 12 months.
Its analysts are positive on the miner's production growth and free cash flow (FCF) outlook. It said:
Rio is a FCF and production growth story in our view, with forecast Cu Eq production growth of ~5-6% in 2023 & 2024 driven by the ramp-up of the Oyu Tolgoi UG copper mine, higher Pilbara Fe shipments with the ramp-up of new mines, and a rebound in aluminium production post labour and equipment challenges.
