FBR Capital Reiterates an 'Outperform' on Cliffs Natural Resources (CLF); Solid Analyst Day Highlights Growth Options
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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
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FBR Capital reiterates an 'Outperform' on Cliffs Natural Resources (NYSE: CLF), PT $145.
FBR analyst says, "Yesterday, Cliffs Natural Resources' management provided a good overview of its strategy, execution, growth opportunities, rising exploration prowess, and longerterm production and capital spending targets. We came away mostly favorable, in that our key thesis about growth at a nice discount is clearly intact—and that it should easily be financed with internally generated cash flow. The only negative (which should be of no surprise) is the poor performance of coal operations, which represent less than 10% of EBITDA. Although this is small, investors keyed their focus on the misfortunes of the coal business, since they highlight management's underestimation of operational risks and the lack of a strong skill set for entering into a sister commodity to iron ore. Looking past this issue, the company's solid iron ore acquisitions were timely and scalable."
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 $89.20 yesterday.
FBR analyst says, "Yesterday, Cliffs Natural Resources' management provided a good overview of its strategy, execution, growth opportunities, rising exploration prowess, and longerterm production and capital spending targets. We came away mostly favorable, in that our key thesis about growth at a nice discount is clearly intact—and that it should easily be financed with internally generated cash flow. The only negative (which should be of no surprise) is the poor performance of coal operations, which represent less than 10% of EBITDA. Although this is small, investors keyed their focus on the misfortunes of the coal business, since they highlight management's underestimation of operational risks and the lack of a strong skill set for entering into a sister commodity to iron ore. Looking past this issue, the company's solid iron ore acquisitions were timely and scalable."
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 $89.20 yesterday.
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