UPDATE: Bank of America Reduces PO to $42 on Cliffs Natural Resources on Unfavorable Spot Prices

Bank of America reiterated its Neutral on Cliffs Natural Resources CLF and lowered its price target from $52 to $42 a share. Bank of America commented, "Current spot prices imply significant risk for Cliffs, which we believe are somewhat offset by the prospects of iron ore prices recovering and its elevated dividend yield. We cut our price objective to $42/share from $52. Our new PO uses a 5.5-6x EV/EBITDA multiple on various stress tests of earnings rather than estimates." Cliffs Natural Resources closed at $36.84 on Wednesday.