Goldman Sachs Chops Estimates on Cliffs Natural Resources (CLF) as Bloom Lake Taking Longer; L-T Story Still Intact

July 27, 2012 11:24 AM EDT Send to a Friend
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Price: $15.07 --0%

Rating Summary:
    4 Buy, 15 Hold, 8 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Goldman Sachs maintains a 'Buy' on Cliffs Natural Resources (NYSE: CLF) price target of $50.00 (from $65.00).

Analyst, Sal Tharani, said, "We have been wrong about the extent of cost inflation at Cliff’s Canadian operations and have had to cut estimates several times. The significant underperformance in CLF stock implies that that we were too optimistic in
our assumptions. However, we maintain our Buy rating and see the current level as a good entry point, as we believe that the latest guidance cuts have sufficiently lowered the bar..."

Q3 EPS lowered from $2.00 to $1.47, Q4 cut from $1.95 to $1.54...2012 EPS to $5.50 from $6.35. 2013/2014/2015/normalized EPS estimates to $7.60/$7.40/$5.00/$6.50 from $9.25/$9.00/$5.65/$8.00 on lower volumes from Canada, higher costs, and the removal of Sonama Coal operations due to its divestiture

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 $38.57 yesterday.




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