Cleveland-Cliffs (NYSE: CLF) Outlook Revised by Citi: What Investors Need to Know
Cleveland-Cliffs, a major American mining and natural resources company, has seen adjustments in its outlook by Citi, a leading financial institution. The analyst at Citi has lowered the price target for Cleveland-Cliffs to $12.50 from $18.00, maintaining a Neutral rating on the stock. This revision comes in light of the company's third-quarter performance expectations and the broader economic forecast.
Citi's revised price target reflects a more conservative estimate of Cleveland-Cliffs' future earnings, with a focus on EBITDA. The firm anticipates a lower EBITDA for the third quarter of 2024 compared to previous estimates, citing factors such as decreased realized prices and expected cost reductions.
Looking ahead, Citi has also adjusted its EBITDA estimates for 2024 and 2026, partly due to recalibrations in mid-cycle expectations. The financial institution expects the upcoming earnings call to address key topics such as recent developments like the Stelco deal and automotive contracts.
In other news, Cleveland-Cliffs has been in the spotlight for significant developments, including President Biden's decision to block foreign acquisition of U.S. Steel by Nippon Steel. The company has expressed readiness for potential acquisitions and investments in affected assets.
Seaport Global Securities upgraded Cleveland-Cliffs' stock rating to Buy, setting a new price target at $16.50. The company has also made key appointments and issued additional senior guaranteed notes to fund acquisitions.
InvestingPro Insights offer additional analysis on Cleveland-Cliffs, highlighting market capitalization, P/E ratios, and potential buying opportunities based on expert tips. While short-term volatility may be a concern, the longer-term valuation could present a different picture for investors.
Overall, the revised outlook on Cleveland-Cliffs by Citi and additional insights from InvestingPro provide valuable information for investors looking to understand the company's performance and prospects in the current economic landscape. It is essential for investors to consider all factors before making any investment decisions to mitigate risks and maximize potential returns.