Cliffs Natural Resources (CLF) Likely to Remain Stuck in Mud, Thinks Analyst

April 29, 2013 11:19 AM EDT
Get Alerts CLF Hot Sheet
Price: $9.01 -4.45%

Rating Summary:
    3 Buy, 12 Hold, 12 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 37 | New: 34
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KeyBanc today maintained a Hold rating on Cliffs Natural Resources (NYSE: CLF). Analyst Mark L. Parr said he expects the stock to remain static in the $20/share range given ongoing concerns about iron ore prices.

"Our bearish view on future iron ore pricing has been driven by an expectation for large new projects to hit the global market during the 2013-2015 time-frame . . . We believe that as long as this view remains dominant, CLF shares will lack any meaningful upside catalyst despite strong measures over the last few months to improve liquidity," said Parr.

"We concede that as in past cycles, much of this new capacity will likely never reach the production stage. However, a large portion (55%) is being developed by the world's five largest miners, and we believe should be viewed as having a high probability of coming to market, given attractive expected cash costs and easy access to funding," added the analyst.

For an analyst ratings summary and ratings history on Cliffs Natural Resources (NYSE: CLF) click here. For more ratings news on Cliffs Natural Resources click here.

Shares of Cliffs Natural Resources closed at $20.17 yesterday.

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