Bank of America Securities analyst Lawson Winder reiterated a Hold rating on Cleveland-Cliffs (CLF – Research Report) today and set a price target of $18.00.
Lawson Winder decided on a Hold rating for Cleveland-Cliffs’ stock due to a variety of factors. The company’s Q3’23 results slightly exceeded Bank of America’s estimates, mainly due to better-than-anticipated pricing. However, the projected EBITDA for Q4’23 fell below the consensus, despite a forecasted $15/short ton decrease in costs. This is primarily because the decrease in costs is not expected to compensate fully for the delayed flow-through of index pricing.
Winder acknowledges Cleveland-Cliffs’ impressive pricing power in the automotive sector and its strong potential for free cash flow. He also recognizes the positive influence of the recent tentative agreement between Ford and the United Auto Workers. However, he anticipates a downside to Q4’23 consensus estimates, which could influence how CLF shares trade. Furthermore, the ongoing strategic review process of US Steel could impact the stock’s performance. Consequently, Winder decided to maintain a Neutral rating for Cleveland-Cliffs.
Winder covers the Basic Materials sector, focusing on stocks such as Cleveland-Cliffs, Centerra Gold, and Nucor. According to TipRanks, Winder has an average return of -6.3% and a 36.90% success rate on recommended stocks.
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Cleveland-Cliffs (CLF) Company Description:
Cleveland-Cliffs, Inc. is an iron ore mining company. It supplies iron ore pellets to the North American steel industry from mines and pellet plants located in Michigan and Minnesota. It operates through the following segments: Mining & Pelletizing and Metallics. The Mining & Pelletizing segment owns operational iron ore mines plus and indefinitely idled mine. The Metallics segment constructs an HBI production plant in Toledo, Ohio. The company was founded in 1847 and is headquartered in Cleveland, OH.
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