LONDON (ShareCast) - (Sharecast News) - Berenberg has kept a 'buy' rating on Rio Tinto but said that Thursday's news of its chief executive's resignation came as a "big surprise".
The mining group unexpectedly announced that boss Jakob Stausholm will leave the company later this year after four years in the role, calling it a "natural moment" for a change in leadership

"This news comes as a big surprise and in our view was not expected; no clear reason for his departure has been given by the company other than to state that now is 'a natural moment' to appoint a successor - but it does not feel that natural to us," Berenberg said in a research note.

The broker credited Stausholm as leading a "major cultural rebrand" at Rio, including the company's shift to lithium - the firm just this year completed the $6.7bn acquisition of Arcadium Lithium - as he aligned the miner with the energy transition.

"We had expected Mr Stausholm to remain with the company and drive the integration of the lithium business, so his exit comes as a surprise, given the recent acquisition and strategic step," Berenberg said.

On possible successors for Stausholm's position, the broker highlighted chief commercial officer Bold Baatar and the head of the iron ore division Simon Trott as potential candidates, along with the head of Australian operations Kellie Parker, CFO Peter Cunningham and minerals lead Sinead Kaufman.

Nevertheless, with a 6,200p target price for the stock indicating 33% upside from Wednesday's close, Berenberg stuck with a positive view of the shares.

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