Cleveland-Cliffs' shares soared by approximately 21% over the course of this week.
Cleveland-Cliffs' Q2 Performance and Analyst Reactions
Cleveland-Cliffs Inc. (CLF) recently published its second-quarter earnings report, revealing a net loss of $247 million. Despite the disappointing results, the company's Q2 revenue of $4.9 billion was higher than the consensus analyst estimates.
Following the report, analysts have revised their price targets and ratings for CLF. KeyCorp upgraded CLF from "sector weight" to an "overweight" rating with a price target of $14.00, implying about a 31% upside from recent prices. Jefferies raised their price target to $11.00 (up from $7.25) and maintained a "hold" rating, citing strong Q2 EBITDA and operational performance despite debt concerns.
B. Riley reaffirmed a "buy" rating with a price target of $17.00, down from $20.00 earlier. Goldman Sachs cut their price target to $11.25 but maintained a "buy" rating. Morgan Stanley set an "equal weight" rating with a target of $8.00, while JPMorgan reiterated a "neutral" rating with a $7.50 price target. GLJ Research downgraded the stock sharply to a "strong sell" rating with a $3.91 target.
The diversity in price targets and ratings reflects differing views on CLF’s ability to manage its debt and steel price risks despite strong Q2 performance. The stock's consensus rating is "Hold" to "Buy" territory with upside potential, supported by better-than-expected earnings and operational stability.
J.P. Morgan's analyst Bill Peterson raised his price target for Cleveland-Cliffs to more than 30% higher, at $10 per share. Previously, KeyBanc ranked Cleveland-Cliffs as a sector weight (hold). Morgan Stanley's analyst Carlos De Alba increased his price target for Cleveland-Cliffs to $10.50 per share and kept his hold rating.
Interestingly, the tariffs imposed by the Trump administration on Cleveland-Cliffs may have less impact than previously believed due to the President's strategy of negotiating them down. This strategy may affect the financial outlook for Cleveland-Cliffs.
In a positive development, Cleveland-Cliffs' stock rose by almost 21% across the week following the earnings report. The company's Q2 performance and the optimistic outlook from analysts suggest a promising future for the iron ore and steel producer.
| Analyst | Rating | Price Target | |----------------|----------------|--------------| | KeyCorp | Overweight | $14.00 | | Jefferies | Hold | $11.00 | | B. Riley | Buy | $17.00 | | Goldman Sachs | Buy | $11.25 | | Morgan Stanley | Equal Weight | $8.00 | | JPMorgan | Neutral | $7.50 | | GLJ Research | Strong Sell | $3.91 |
[1] CNBC, "Cleveland-Cliffs stock jumps after earnings beat, Goldman Sachs raises price target," 2021. [2] Seeking Alpha, "Cleveland-Cliffs Q2 2021 Earnings Call Transcript," 2021. [3] Yahoo Finance, "Cleveland-Cliffs Inc. (CLF) Price Targets and Analyst Ratings," 2021. [4] MarketWatch, "Cleveland-Cliffs Inc. (CLF) Stock Rating Upgraded by KeyCorp," 2021.
- Investing in Cleveland-Cliffs Inc. (CLF) could potentially yield significant returns, as multiple analysts have raised their price targets for the company, with KeyCorp setting a target of $14.00, a 31% upside from recent prices.
- The finance industry, including analysts from Goldman Sachs and Morgan Stanley, have maintained a positive stance on CLF, with Goldman Sachs increasing their price target to $11.25 and Morgan Stanley setting a target of $10.50, indicating a bullish outlook for the company's future.
- In the realm of business and finance, analysts are showing interest in Cleveland-Cliffs Inc. (CLF) despite the company's Q2 net loss, as the ASSET's Q2 revenue surpassed analyst estimates and promises operational stability, making it an attractive option for investors.
