J.P. Morgan Remains Cautious On North American Coal, Reiterates Cliffs Natural Resources Rating

J.P. Morgan is lowering its EPS estimates and price target for Cliffs Natural Resources Inc. CLF, primarily after reducing our expected 2011 average iron ore price realizations in both the North American and Asia-Pacific segments. “In our view, the company's preliminary 2011 iron ore shipment guidance appears attainable with Chinese imports and customer-friendly contracts in North America underpinning demand,” J.P. Morgan writes. “We remain cautious on North American Coal in light of recent production issues, but suspect that most investors have also built in a fair degree of conservatism into their models already.” J.P. Morgan is reiterating its Overweight rating on Cliffs Natural Resources Inc. CLF for its growing long-term exposure to already solid fundamentals in met coal and iron ore. Cliffs Natural Resources currently trades at $65.20.