Cliffs Natural (CLF) Extended Deal with Essar a Positive - FBR
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Price: $10.46 -6.36%
Rating Summary:
5 Buy, 16 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 12 | New: 19
Rating Summary:
5 Buy, 16 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 12 | New: 19
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FBR Capital said Cliffs Natural's (NYSE: CLF) deal with Essar Steel Algoma, Inc. to extended their iron ore pellet sales contract through 2024 versus 2016 originally is a positive.
"We believe this is a positive move given it provides some certainty of volumes beyond 2016, which has been one of the Debatable Points for the name," analyst Mitesh Thakkar said. "However, we believe CLF might have had to offer some discounts to the customer to win this extension. With this contract extended, we believe the supply/demand dynamics improve for the Great Lakes beyond 2015 as it reduces the potential surplus supply."
The firm reiterated its Outperform rating and price target of $28.00
For an analyst ratings summary and ratings history on Cliffs Natural Resources click here. For more ratings news on Cliffs Natural Resources click here.
Shares of Cliffs Natural Resources closed at $18.70 yesterday.
"We believe this is a positive move given it provides some certainty of volumes beyond 2016, which has been one of the Debatable Points for the name," analyst Mitesh Thakkar said. "However, we believe CLF might have had to offer some discounts to the customer to win this extension. With this contract extended, we believe the supply/demand dynamics improve for the Great Lakes beyond 2015 as it reduces the potential surplus supply."
The firm reiterated its Outperform rating and price target of $28.00
For an analyst ratings summary and ratings history on Cliffs Natural Resources click here. For more ratings news on Cliffs Natural Resources click here.
Shares of Cliffs Natural Resources closed at $18.70 yesterday.
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