Cleveland-Cliffs: Strategic Shifts and Steel Pricing Drive Buy Rating Despite Recent Challenges

Analyst Chris LaFemina of Jefferies maintained a Buy rating on Cleveland-Cliffs (CLF – Research Report), retaining the price target of $12.00.

Chris LaFemina has given his Buy rating due to a combination of factors that suggest potential for future improvement despite recent challenges. Cleveland-Cliffs has faced a difficult quarter with a significant EBITDA loss, but the company has announced strategic operational changes aimed at reducing costs and improving efficiency. These changes include idling underperforming facilities and focusing on more profitable segments, such as the automotive market.
LaFemina’s optimism is also driven by expectations of higher earnings in the upcoming quarter as the company benefits from current steel prices and operational adjustments. Additionally, the termination of an unprofitable contract is anticipated to provide a substantial EBITDA boost. While the near-term outlook may seem complicated due to strategic shifts, the company’s exposure to favorable steel pricing and cost-saving measures supports the Buy rating.

In another report released on May 3, Seaport Global also maintained a Buy rating on the stock with a $11.00 price target.

Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CLF in relation to earlier this year.