Goldman Sachs downgraded Rio Tinto to "neutral" from "buy" after the mining company's shares surged roughly 60% over six months. The brokerage cut its 12-month price target by 6% to £74 per share, considering the stock trading at full valuation with just 3.9% upside potential from current levels.

Rio Tinto's 2025 results disappointed, with underlying EBITDA at $25.4 billion and net profit of $10.9 billion both missing analyst estimates. The miner's net debt of $14.4 billion exceeded forecasts, driven by higher-than-expected capital expenditure of $12.3 billion. Aluminium segment EBITDA fell short by approximately $700 million due to rising costs.

The company announced a $5-$10 billion non-core divestment program including borates and titanium dioxide assets alongside $650 million in annual cost reductions. Despite the downgrade, Rio Tinto has gained 40.7% over the past year versus a 16.7% rise for the FTSE World Europe index. Goldman has maintained its neutral rating on the stock since initiating coverage in January 2024.