Wells Fargo Maintains Underperform Rating on Cliffs Natural Resources (CLF)

Wells Fargo maintained an Underperform rating on Cliffs Natural Resources (NYSE: CLF). Earlier it reported a definitive agreement to sell its Logan County Coal assets in southern West Virginia to Coronado Coal II LLC for $175 million in cash and the assumption of certain liabilities. Cliffs anticipates using the cash proceeds from the sale for debt repayment.

Analyst Sam Dubinsky thinks the sale helps partially offset the higher than expected cost of shutting Bloom Lake, but it doesn't change his thesis. Valuation was in line with is model, and the remaining portion of coal reserves are likely worth $200 million, if Cliffs can find buyer.

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 $8.16 yesterday.

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