Goldman Sachs Adds RIO to Conviction Buy List (RIO)

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Goldman Sachs is maintaining its Buy rating this morning on Companhia Vale do Rio Doce (NYSE: RIO), but the firm is adding the stock to its Americas Conviction Buy List.  Shares are down over 13% over the past month, worse than -2% for S&P 500.  Goldman also notes that shares look fairly inexpensive.  In fact, it sees an 88% upside opportunity to its 12 month target of $58 per ADR.  The company settled 2008 pellet prices at an 87% year over year increase, well above Goldman Sachs projected 45% increase.  The firm also believe that iron ore consumption will be less affected than other metals due to the industrialization and urbanization in BRIC countries.

Jon C. Ogg
March 24, 2008