CLF Stock Falls on Cliffs Natural Resources Downgrade

by Karl Utermohlen | March 4, 2014 1:23 pm

CLF Stock Falls on Cliffs Natural Resources Downgrade

Cliffs Natural Resources (CLF[1]) received a couple of downgrades that saw CLF stock drop over 2% on Tuesday.

clf stock cliffs natural resources CLF Stock Falls on Cliffs Natural Resources Downgrade[2]Citigroup downgraded[3] 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[4] 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.

Endnotes:
  1. CLF: http://studio-5.financialcontent.com/investplace/quote?Symbol=CLF
  2. [Image]: http://investorplace.com/wp-content/uploads/2014/01/clf-stock-cliffs-natural-resources.jpg
  3. downgraded: http://seekingalpha.com/article/2064103-cliffs-natural-resources-citigroups-downgrade-and-how-you-can-benefit
  4. downgraded: http://seekingalpha.com/news/1605443-cliffs-natural-resources-minus-1_8-percent-on-wells-fargo-downgrade

Source URL: http://investorplace.com/2014/03/clf-stock-cliffs-natural-resources-3/
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