UPDATE: Bank of America Downgrades Cliffs Natural Resources on Conviction Of Weak Commodity Prices

In a report published on Wednesday, Bank of America analyst Timna Tanners downgraded Cliffs Natural Resources CLF from Neutral to Underperform and lowered the price target on the company from $24 to $16.

In the report, Bank of America stated, "Downgrading on conviction of weak commodity prices We downgrade miner Cliffs to Underperform from Neutral on the back of newly lowered met price forecasts and to reflect increasing conviction that CLF's iron ore and met will be high-cost production that struggles to compete with new Australian capacity...We think near-term financing issues are not a risk, but shares look overpriced to us in light of constrained earnings capacity ahead."

Cliffs Natural Resources closed on Tuesday at $18.59.