Cleveland-Cliffs assumed with a Neutral at Goldman Sachs

In a sector note on Americas Steel, Goldman Sachs analyst Nick Cash assumed coverage of Cleveland-Cliffs (CLF) with a Neutral rating and $9 price target Goldman Sachs said it is bullish on U.S. steel equities “as a result of sustained higher prices due to section 232 steel tariffs moving import costs up while also constraining supply,” adding that it sees “above average demand growth in infrastructure as well as pockets of growth in private non-residential construction.” However, given the uncertainty in the current macro environment, the firm said it favors “lower beta companies set to accelerate free cash flow and realize higher through cycle margins as they benefit from metal margin expansion and product diversification.”