Goldman Sachs Starts Cliffs Natural Resources (CLF) at Conviction Buy

Goldman Sachs initiates coverage on Cliffs Natural Resources (NYSE: CLF) with a Conviction Buy List rating and $93 price target.

The firm believes iron ore prices will remain at or above $150 through 2013 "as supply will remain in deficit longer than the market is expecting due to supply-side hurdles and continued strong demand."

Goldman likes the company not only for its iron ore exposure, but also a gradual roll over of its US legacy contracts to global benchmark prices, which will enable it to achieve higher prices and margins. They also like the company's growth profile and estimate its iron ore and coking coal production will increase by 30% and 55%, respectively, over the next three years.

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 $68.34 yesterday.

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