UPDATE: Morgan Stanley Reiterates Underweight Rating, Removes PT on Cliffs Natural Resources Following Modest 4Q13 Beat

In a report published Friday, Morgan Stanley analyst Evan L. Kurtz reiterated an Underweight rating on

, but removed the $12.00 price target. In the report, Morgan Stanley noted, “Results for 4Q13 modestly exceeded consensus and our estimates. Adjusted for our $120/t iron ore price forecast, the mid-points of 2014 guidance imply EBITDA well below consensus (currently at $1,202m), but about $22m above MSe EBITDA of $909m. At the mid-point, guidance implies breakeven EBITDA in the coal segment. Significantly reduced SG&A and exploration spending will help to address some investor concerns. However, investors will be looking for further clarity on the future magnitude and timing of tailings management capex in Canada.” Cliffs Natural Resources closed on Friday at $21.90.