Citigroup Reiterates Neutral Rating, Lowers PT on Cliffs Natural Resources on Lowered 2014 Estimate

In a report published Tuesday, Citigroup analyst Brian Yu reiterated a Neutral rating on

, but lowered the price target from $27.00 to $26.00. In the report, Citigroup noted, “We are lowering our 2014 estimate to $1.60 from $2.33 after adjusting our model for management's guidance. We lowered our EBITDA estimate to $1,100 mln from $1,190 mln after incorporating a larger realized price discount relative to Citi's benchmark iron ore forecast of $120/T. As well DD&A expense is higher than we modeled and the Minority Interest offset is lower following WISCO's dilution. Based on our new EBITDA estimates, we are shaving our target price to $26/sh. We remain neutral on CLF given risks of weaker iron ore with prices expected to average $115/T in 2H14 and $100/T in 2015, balanced by the company's capital discipline.” Cliffs Natural Resources closed on Friday at $23.16.