Cleveland-Cliffs Downgraded, Shares Drop 9.27%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- Stock Decline: Cleveland-Cliffs shares fell over 9% following an analyst downgrade, reducing its market cap to $7.6 billion, reflecting market concerns about its future prospects.
- Analyst Downgrade: KeyBanc analyst Philip Gibbs downgraded the company from overweight to sector weight, citing rising costs and fading activity from auto industry customers as challenges impacting investor confidence.
- Market Reaction: Following the downgrade announcement, Cleveland-Cliffs' stock traded within a range of $11.78 to $13.08, indicating cautious sentiment regarding its short-term performance.
- Strategic Partnership: Despite the challenges, Gibbs remains optimistic about Cleveland-Cliffs' strategic cooperation with top Korean steelmaker POSCO, suggesting it could positively influence its operations and finances.
Analyst Views on CLF
Wall Street analysts forecast CLF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLF is 12.12 USD with a low forecast of 5.75 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
2 Buy
6 Hold
1 Sell
Hold
Current: 12.040
Low
5.75
Averages
12.12
High
16.00
Current: 12.040
Low
5.75
Averages
12.12
High
16.00
About CLF
Cleveland-Cliffs Inc. is a steel producer with a focus on value-added sheet products, particularly for the automotive industry in North America. The Company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Its offering includes advanced high-strength steel, hot-dipped galvanized, aluminized, galvalume, electrogalvanized, galvanneal, hot-rolled coil (HRC), cold-rolled coil, plate, grain oriented electrical steel (GOES), non-oriented electrical steel (NOES), stainless steels, tool and die, stamped components, rail, slab and cast ingot. Its Other Businesses primarily include the Tubular and Tooling and Stamping segments that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components and complex assemblies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
