tiprankstipranks
Rio Tinto to Buy Electric Trains from Wabtec to Lower Carbon Emissions
Market News

Rio Tinto to Buy Electric Trains from Wabtec to Lower Carbon Emissions

In its endeavour to lower carbon emissions by 50% by 2030, Rio Tinto (RIO) has revealed plans to buy four electric trains for the Pilbara region of Western Australia. The company engages in the exploration, mining and processing of mineral resources in over 35 countries.

The production of the 7MWh FLXdrive battery-electric locomotives purchased from Wabtec Corporation is expected to commence in the United States in 2023.

Notably, the engines will be designed in a way that they can generate additional energy, while in transit, through a regenerative braking system.

By adopting net-zero emissions technology in its entire fleet of rail locomotives, Rio Tinto will be able to reduce Iron Ore’s diesel-related carbon emissions in the Pilbara region by around 30% annually.

The Managing Director of Port, Rail and Core Services at Rio Tinto, Richard Cohen, said, “Our partnership with Wabtec is an investment in innovation and an acknowledgement of the need to increase the pace of our decarbonisation efforts.”

Analyst’s Rating

Last month, Jefferies analyst Christopher LeFemina maintained a Hold rating on Rio Tinto and lowered the price target to $65 from $71. The new price target implies 10.6% downside potential from current level.

Consensus among analysts is a Moderate Buy based on 2 Buys and 2 Holds. The average RIO price target stands at $76.6 and implies upside potential of 5.4%.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Rio Tinto with 5.3% of investors on TipRanks increasing their exposure to RIO stock over the past 30 days.

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Download the TipRanks mobile app now

Related News:
Discovery Buys Minority Stake in OpenAP
Illumina Discloses Preliminary Results, 2022 Outlook & Announces Partnerships
fuboTV Releases Preliminary Q4 Results; Shares Down 8.4%

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles