“Uncertainty breeds opportunity” – which means now is a good time to play Rio Tinto shares, according to Morgan Stanley. “Demand concerns and falling iron ore prices have downgraded shares of Rio Tinto PLC, presenting an opportunity to gain exposure to a business with high-quality assets, a growing copper footprint, improving operational performance and best-in-class capital return prospects,” the firm said in a statement on Friday. notes. Analyst Alain Gabriel raised the stock to overweight from equal weight. His price target for the company’s UK-traded shares suggests a 22% upside from Thursday’s close. RIO YTD mountain RIO in 2023 Gabriel said that while iron ore still dominates Rio Tinto’s revenue portfolio, “its footprint in copper remains undervalued, with 2028 volume growth outpacing others and copper’s contribution to group EBITDA growing over the period to ~ 25%. highest among diversified miners.” He added that after a series of production setbacks and ESG challenges, the company is “rebuilding confidence, one asset at a time”. at the Oyu Tolgoi UG project is hitting new highs and management is working with stakeholders to rebuild its social license,” Gabriel said. We see minimal risks to consensus volume, operating costs and capex expectations in the near to medium term. The company’s shares traded in the US up 2.9% on Friday morning. Meanwhile, shares remain down 14.2% over the past 12 months. —CNBC’s Michael Bloom contributed to this report.