UPDATE: Bank Of America Reiterates On Cliffs Natural Resources On Iron Ore Forecast Cut

In a report published Wednesday, Bank of America analyst Timna Tanners reiterated an Underperform rating on Cliffs Natural Resources Inc CLF, but lowered the price target from $8.00 to $4.00. In the report, Bank of America noted, “We cut 2014-16E EPS estimates and our PO for CLF as our global commodities team, (Link) hacked benchmark iron ore prices to $80/t from $95 in 2015E and 2016E. A surge of new supply (+200M mt in 2015/16), coupled with high inventories, should weigh on prices over the next several years. In addition, Chinese domestic production has been loathe to idle capacity, as government incentives, lower-than-expected costs, and access to higher-grade areas have provided volume support.” Cliffs Natural Resources Inc closed on Tuesday at $9.07.