BMO Says Cliffs Needs to Reduce Dividend Soon; Notes Oversold Conditions
Shares of Cliffs Natural Resources (NYSE: CLF) are not participating in Friday's rally as investors may be weighing an earlier research note from BMO Capital's Tony Robson. The stock is up 0.7 percent, versus a 0.9 percent gain in the DJIA.
The analyst is warning Cliffs dividend is not sustainable at current levels. Robson reduced his quarterly dividend estimate to $0.28/share; Cliffs currently pays a dividend of $0.625/share per quarter.
Despite the warning, Robson said Cliffs remains a high-risk iron play given the company's moderate-higher operations cost and leverage to iron-ore prices. Robson believes Cliffs shares are currently oversold. The stock has fallen more than 30 percent since mid October.
Latest Ratings for CLF
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Nov 2016 | JP Morgan | Maintains | Overweight | |
| Nov 2016 | Morgan Stanley | Upgrades | Underweight | Equal-Weight |
| Aug 2016 | Macquarie | Maintains | Outperform |
View More Analyst Ratings for CLF
View the Latest Analyst Ratings
Posted-In: Analyst Color News Dividends Analyst Ratings
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