Dahlman Rose Loves Cliffs Natural

Dahlman Rose & Co. really likes Cliffs Natural Resources Inc CLF, as it initiates coverage on the company with a Buy rating and an $85 price target on the mining company. In the research note, Dahlman writes, "We anticipate that strong demand for raw materials from emerging economies will boost the price of iron ore and metallurgical coal globally over the intermediate term. We believe that Cliffs Natural Resources (CLF) is well positioned to benefit from this trend." Dahlman goes on to say, "CLF has amassed a portfolio of assets which are well positioned to capitalize on improvements in global and domestic steel production trends. We like the exposure to international markets (where iron ore prices are higher but more volatile) that the company's Australian assets provide, while CLF's domestic assets provide more stable cash flows. Further, we believe that both of CLF's core raw materials, iron ore and met coal, are well positioned to benefit from increasing steel production. Over the long term, we anticipate that the company's chromite assets will contribute to earnings, as CLF continues to pursue its goal of comprehensively serving the carbon steel industry." Shares of CLF are gaining $1.52 or 2.5% this morning to $62.15. See more real-time trading ideas Here