UPDATE: Bank of America Lowers PO on Cliffs Natural Resources on Iron Ore Weakness
Bank of America analyst Timna Tanners published a report on Cliffs Natural Resources (NYSE: CLF) that reiterated its Neutral rating and lowered the price target from $30 to $25.
Bank of America reported that, “Global iron ore prices have nosedived in recent weeks, down 16% since Feb 20, with the IODEX benchmark down to $134.25/t vs our commodity team's 2013E forecast of $120/t. We are constructive near-term and model an average $135/t in H113E on weather-related supply constraints and renewed China demand post new year but anticipate new capacity could depress prices in H213E and forecast a $110/t price. As we expect iron ore prices continue to retreat as the year progresses with the arrival of new capacity, already planned and financed from various suppliers, we wanted to revisit our scenario analysis for Cliffs earnings and debt metrics.”
Shares of Cliffs Natural Resources closed at $22.09 on Friday.
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