FBR Capital Maintains an 'Outperform' on Cliffs Natural Resources (CLF); Equity Overhang Finally Getting Removed, Setting Stage for Renewed Buying Interest
Tweet
Share
E-mailGet Alerts CLF Hot Sheet
Price: $11.90 -2.06%
Rating Summary:
5 Buy, 16 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 16 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
FBR Capital maintains an 'Outperform' on Cliffs Natural Resources (NYSE: CLF), PT $145.
FBR analyst says, "Yesterday, after the close, CLF announced it will raise equity to finish off funding of its $4.9B Consolidated Thompson (CLM) iron ore acquisition (closed 5/12/11). We officially raise our 2011–2013 estimates by ~11% and modestly lower our pro forma estimates by ~3% to reflect closing of the transaction, updated guidance, and a modestly lower equity raise. The equity offering has been telegraphed since 1/11/11, the date the transaction was announced. We remove one of investors' near-term debatable points regarding how much equity would be raised; now we can focus on more longer-term issues: (1) iron ore prices, (2) CLM integration and ramp-up, (3) improvement of its coal business, (4) chromite start-up and execution (could be $10/share of value), (5) insurance proceeds from coal. Despite event risk of the equity offering, debate surrounding the amount of equity raise is tied to timing of future acquisition appetite."
For more ratings news on Cliffs Natural Resources click here and for the rating history of Cliffs Natural Resources click here.
Shares of Cliffs Natural Resources closed at $86.85 yesterday.
FBR analyst says, "Yesterday, after the close, CLF announced it will raise equity to finish off funding of its $4.9B Consolidated Thompson (CLM) iron ore acquisition (closed 5/12/11). We officially raise our 2011–2013 estimates by ~11% and modestly lower our pro forma estimates by ~3% to reflect closing of the transaction, updated guidance, and a modestly lower equity raise. The equity offering has been telegraphed since 1/11/11, the date the transaction was announced. We remove one of investors' near-term debatable points regarding how much equity would be raised; now we can focus on more longer-term issues: (1) iron ore prices, (2) CLM integration and ramp-up, (3) improvement of its coal business, (4) chromite start-up and execution (could be $10/share of value), (5) insurance proceeds from coal. Despite event risk of the equity offering, debate surrounding the amount of equity raise is tied to timing of future acquisition appetite."
For more ratings news on Cliffs Natural Resources click here and for the rating history of Cliffs Natural Resources click here.
Shares of Cliffs Natural Resources closed at $86.85 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fiserv (FISV) PT Lowered to $60 at Freedom Broker
- Jefferies on Five Below (FIVE): 'Our latest channel checks reinforce our view that FIVE's momentum extends well beyond viral Squish trends'
- UBS Reiterates Buy Rating on Hilton Worldwide (HLT)
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
