Cleveland-Cliffs Stock Slumps Amid Conflicting Wall Street Calls

Cleveland-Cliffs ( (CLF) ) has fallen by -7.12%. Read on to learn why.

Cleveland-Cliffs shares fell 7.12% over the past week as investors digested a wave of conflicting analyst calls and mixed fundamentals in the steel sector. While the company modestly grew quarterly revenue to $4.73 billion, it still posted a GAAP net loss of $251 million, slightly worse than the loss a year earlier. That continuing profitability pressure, combined with concerns about costs, weighed on sentiment despite a supportive backdrop of elevated U.S. steel prices driven in part by 50% steel tariffs.

On the positive side, Morgan Stanley turned more bullish, upgrading Cleveland-Cliffs to Overweight from Equal Weight and lifting its price target to $17 from $12.80. The bank argued that elevated steel prices should hold as tariffs remain in place and domestic mills continue to take share from imports, creating what it called a “potentially transformational opportunity” for Cleveland-Cliffs through 2026. Another Morgan Stanley analyst, Carlos De Alba, reiterated a Buy rating with the same $17 target, and his strong track record added weight to the bullish view.

However, the upbeat calls were offset by more cautious voices. KeyBanc downgraded Cleveland-Cliffs to Sector Weight, citing valuation concerns and the company’s modestly higher costs, even as positives such as auto contract wins, improved liquidity and non-core asset sales have largely played out. The broader analyst community still sits at a Hold consensus with an average price target of about $12.78, well below Morgan Stanley’s outlook. This tug-of-war between optimistic and cautious analysts, combined with ongoing losses and cost pressures, helped drive Cleveland-Cliffs’ stock lower over the week despite signs of long-term potential.