Rio Tinto Limited (ASX: RIO) shares are up 22 per cent over the past year with the miner also handing out $8.97 in dividends over the period as well. That amount includes a special dividend paid in April 2019 to mean the stock has yielded a whopping 9.1% for shareholders over the past 12 months. It also bought back around US$1 billion of shares over the period.
According to a research note out of Goldman Sachs Rio might have upside ahead.
Goldman's is forecasting the iron ore price to average US$86 a tonne over 2020. As a result it expects Rio to earn US$5.50 per share over fiscal 2020. Total Pilbara iron ore production is estimated between 330 million tonnes to 340 million tonnes over 2020.
As a result of its production and earnings forecasts Goldman's is tipping Rio shares to hit $99.20 over the next 12 months. It also has a buy rating on BHP Group Ltd (ASX: BHP) shares and a neutral rating on Fortescue Metals Group Limited (ASX: FMG).
