Cliffs Natural Resources (CLF) received a couple of downgrades that saw CLF stock drop over 2% on Tuesday.
Citigroup downgraded its price target on the company from $26 to $22 on March 3. Analysts’ main reason for downgrading CLF stock is the spot price for iron ore which could make Cliffs Natural Resources an attractive buy.
Wells Fargo also downgraded CLF stock from Market Perform to Underperform, lowering its valuation range from $19-$24 to $12-$14. The firm lowered its estimated 2014 EPS from $1.75 to $0.55 due to weakening global spot pricing due to a slowdown in China along with excess inventories and growing supply from low cost miners.
CLF stock is down about 2.6% Tuesday.