Deutsche Bank Downgrades Cliffs Natural Resources (CLF) to Hold on Headwinds and Recent Surge

Deutsche Bank downgraded Cliffs Natural Resources (NYSE: CLF) from Buy to Hold with a price target of $45.00.

"Downgrading to Hold on share price following surge from September low Iron ore prices have rallied 35% to ~$117/ton (and our now basically in line with DBe 2012E-2014E) off lows seen in early September. Similarly, Cliffs' shares have gained 32%, significantly off September's $34 low. Based on this, our deferred view of China stimulus and our expectation of a weak 3Q12 result (DBe are 23% below consensus) we downgrade Cliffs to a Hold rating. We believe Cliffs will continue to maintain its $2.50/share dividend policy, a yield of 4.8%, but look for more specific management actions (cost cutting, facility idling, capex deferrals) in light of the lower iron ore price deck."

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 $44.45 yesterday.

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