Dahlman Rose Downgrades Cliffs Natural Resources (CLF) to Hold; a New Normal
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Price: $20.62 -3.64%
Rating Summary:
6 Buy, 11 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
6 Buy, 11 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade CLF Now!
Dahlman Rose downgraded Cliffs Natural Resources (NYSE: CLF) from Buy to Hold in assumed coverage.
"We are assuming coverage of CLF with a Hold rating (from Buy previously) as we believe low iron ore prices and cash flow concerns will continue to pressure the shares," the analyst said. "We believe the company will have difficult decisions to make over the next year concerning production and capital allocation."
The rating comes after Cliffs reported 3Q12 EPS of $0.59 versus consensus of $1.07.
While the company said its committed to the dividend, Dahlman see another free cash flow deficit year in 2013, and the company could be in a situation where it may need to draw on its revolver ($1.5 Bn undrawn) to help pay its dividend.
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 $38.20 yesterday, with a 52 week range of $32.25-$78.85.
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"We are assuming coverage of CLF with a Hold rating (from Buy previously) as we believe low iron ore prices and cash flow concerns will continue to pressure the shares," the analyst said. "We believe the company will have difficult decisions to make over the next year concerning production and capital allocation."
The rating comes after Cliffs reported 3Q12 EPS of $0.59 versus consensus of $1.07.
While the company said its committed to the dividend, Dahlman see another free cash flow deficit year in 2013, and the company could be in a situation where it may need to draw on its revolver ($1.5 Bn undrawn) to help pay its dividend.
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 $38.20 yesterday, with a 52 week range of $32.25-$78.85.
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