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Morgan Stanley Maintains on Cliffs Natural Resources

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Cleveland-Cliffs: Price Target Exceeded And Upcoming Conference Call (Seeking Alpha)

In a report published Thursday, Morgan Stanley analyst Evan Kurtz maintained Underweight on Cliffs Natural Resources (NYSE: CLF), lowering its price target to $14.00 from $12.00.

According to the report, CLF should announce a decision on the future of Bloom Lake with 4Q13 results.

“We examine 5 scenarios: 1) Cliffs moves forward with Phase II, with a new partner helping to fund capex; 2) Phase II proceeds without a new partner; 3) all Bloom Lake operations are halted; 4) Cliffs continues to operate only Phase I; 5) Cliffs seeks bankruptcy protection for the Canadian subsidiary, which we view as highly unlikely. Inside, we review each scenario and provide NPV sensitivities, where applicable,” the report noted.

Some highlights from the report included:

-Expectations may be too bullish -Investors may be overlooking the impact of rising freight rates on Bloom Lake price realizations

CLF closed Wednesday at $21.19.

Latest Ratings for CLF

DateFirmActionFromTo
Oct 2017JP MorganDowngradesOverweightNeutral
Jul 2017JefferiesInitiates Coverage OnBuy
Nov 2016JP MorganMaintainsOverweight

View More Analyst Ratings for CLF
View the Latest Analyst Ratings

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