Rio Tinto named a top pick at Bernstein, but shares sharply lower

Rio Tinto (RIO -2.2%) is named a Top Pick in European Metals and Mining by Bernstein analyst Paul Gait, who cites Rio's top-quality asset base and notes that Rio's cash generation continues to surprise the market.

"Top line surprises combined with Rio throttling back on capital expenditure will drive a gap between cash flow generation and outflows," the firm says, adding there's "no reason why the resultant de-gearing of Rio’s balance sheet should not see its dividend double."

The kind words aren't helping RIO shares, as the big global miners are broadly lower today: BHP -1.2%, VALE -2.8%, CLF -6.5%, FCX -1.3%.

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