8 Mar

Cleveland-Cliffs: Analysts Increased Their Target Prices

WRITTEN BY Annie Gilroy FEATURED IN Company News, Insights, & Analysis and Basic Materials

Analysts’ recommendations

In the past year, analysts’ sentiment for Cleveland-Cliffs (CLF) has improved. Compared to 58% “buy” recommendations currently, Cleveland-Cliffs stock only had 30% “buy” recommendations at the beginning of March 2018.

Cleveland-Cliffs: Analysts Increased Their Target Prices

Cleveland-Cliffs’ target price of $13.2 implies an upside of ~31% based on its current market price. Among Cleveland-Cliffs’ US steel peers (XME), ArcelorMittal (MT) has 100% “buy” recommendations, while Nucor (NUE), Steel Dynamics (STLD), and U.S. Steel (X) have 80%, 71%, and 29% “buy” recommendations, respectively. AK Steel (AKS) has the lowest percentage of “buy” recommendations at 13%.

The positive turnaround for Cleveland-Cliffs is mainly due to improvements in the company’s fundamentals and the positive macroeconomic backdrop due to tariffs.

Recent rating changes

On March 5, Morgan Stanley set a target price of $13 for Cleveland-Cliffs and maintained its “hold” rating.

On February 11, J.P. Morgan (JPM) raised Cleveland-Cliffs’ target price from $15 to $17. The J.P. Morgan analyst thinks that Cleveland-Cliffs’ stock price doesn’t reflect the company’s commercial projects and higher realized prices. The analyst is also positive on Cleveland-Cliffs’ hot-briquetted iron project, which is expected to start in mid-2020. J.P. Morgan has an “overweight” rating on Cleveland-Cliffs stock.

On February 8, Jefferies raised Cleveland-Cliffs’ target price from $11.5 to $13.75 after the company reported strong fourth-quarter results. The analyst is positive that the tightening pellet supply should benefit the contract terms for Cleveland-Cliffs after 2020.

On January 8, Cowen initiated coverage on Cleveland-Cliffs stock with a “market perform” rating and a target price of $8.5.

Analysts’ opinion

Analysts turned positive on Cleveland-Cliffs stock after management took care of the debt concern. The growth opportunity in Cleveland-Cliffs’ hot-briquetted iron plant improved investors’ sentiments. The latest improvements like re-initiating dividends and a focus on the accretive US steel markets are other positives for the stock.

Next, we’ll discuss the relative valuation for Cleveland-Cliffs stock.

Latest articles

Verizon Communications stock (VZ) closed down 2.09% on Tuesday after the leading US mobile carrier reported mixed results for the first quarter of 2019 before the market bell yesterday.

24 Apr

Nokia’s Patent Business Is Put On the Spot

WRITTEN BY Rachel Gunter

Several European auto companies want Nokia’s (NOK) patent business subjected to an antitrust probe.

The first-quarter semiconductor earnings season has begun, and the stock market is showing bullish sentiment as investors buy ahead of earnings releases.

Netflix (NFLX) is working its way through a series of price increases in several markets, including the United States and parts of Europe.

Netflix (NFLX) is aiming to add 14.6 million paying subscribers in the first six months of 2019.

Earlier today, the second-largest US automaker, Ford Motor Company (F), announced a plan to invest $500 million in Plymouth-based automotive company Rivian.