Cleveland-Cliffs, the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Carlos De Alba from Morgan Stanley maintained a Hold rating on the stock and has a $8.00 price target.
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Carlos De Alba has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Cleveland-Cliffs’ recent performance and outlook. The company’s financial results for the second quarter of 2025 showed a notable improvement in adjusted EBITDA and cash flow from operations, surpassing expectations. However, despite these positive results, the average net selling price of steel was slightly below consensus estimates, which may temper enthusiasm about the company’s revenue potential.
Carlos De Alba also considered Cleveland-Cliffs’ strategic cost-cutting measures, which include reductions in steel unit costs, SG&A expenses, and capital expenditures. While these efforts are commendable and indicate a focus on efficiency, the company’s substantial net debt position remains a concern. The combination of these factors suggests a balanced outlook, leading to the Hold rating as the company continues to navigate both opportunities and challenges in its operational and financial landscape.
In another report released yesterday, Citi also maintained a Hold rating on the stock with a $11.00 price target.