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UPDATE: Goldman Sachs Downgrades Cliffs Natural Resources to Sell on Cost, Operational Risk

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Goldman Sachs reduced its rating on Cliffs Natural Resources (NYSE: CLF) from Neutral to Sell and lowered its price target from $33 to $25.

Goldman Sachs commented, "The announcement to delay its Bloom Lake expansion and curtail some US operations underscores that in a relatively weak iron ore market, high cost producers like Cliffs will be at greater disadvantage. Additionally, we anticipate lower production volume in Canada will translate into higher costs. While we expect a price rebound in 2013, we see prices falling thereafter, placing its expansion plans and dividends at risk. Longer term, new iron ore capacity is being added in North America, which has historically been a stable region for Cliffs."

Cliffs Natural Resources closed at $35.29 on Monday.

Latest Ratings for CLF

DateFirmActionFromTo
Mar 2016Credit SuisseInitiates Coverage onUnderperform
Feb 2016Deutsche BankMaintainsSell
Jan 2016MacquarieDowngradesOutperformNeutral

View More Analyst Ratings for CLF
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

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