UPDATE: Bank of America Raises PO to $35 on Cliffs Natural Resources on Ore Pricing Upside

Bank of America reiterated its Neutral rating on Cliffs Natural Resources

and increased its price objective from $32 to $35. Bank of America noted, "„Scenario analysis suggests upside at current iron ore prices Global iron ore prices have surged in recent weeks, up 24% so far in Q4, with the IODEX benchmark up to $133/t vs our commodity team's 2013 forecast of $110/t. While we continue to anticipate new capacity could depress prices, the timing may be H2 as seasonal demand boosts H1. … We raised our PO to $35/share from $32 using a blended 2013-14E EV/EBITDA, using a scenario of stronger iron ore prices in H1 and coal volume cuts." Cliffs Natural Resources closed at $33.92 on Monday.