RBC Sees Iron Ore Prices Peaking in Q1, Stable Through H113 (CLF) (RIO)
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Price: $18.23 --0%
Rating Summary:
9 Buy, 10 Hold, 10 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 17 | New: 5
Rating Summary:
9 Buy, 10 Hold, 10 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 17 | New: 5
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Cliffs Natural Resources (NYSE: CLF) and other miners are seeing some pressure today due to overall market conditions, but that doesn't mean the negativity will carry into 2013.
According to RBC Capital's Robin Kozar, the recent strength in iron ore prices is "sustainable" into the first-quarter of 2013 as light supplies from India, declining inventories in China, healthy margins in China, and seasonal weakness in the Chinese domestic supply all come into play.
Though pricing is expected to peak in the first quarter, Kozar and his team expect iron ore prices will remain "well supported" into the first-half of the year. Kozar sees first-quarter pricing at $130 per metric ton.
Heading into the latter half of 2013, easing in prices is expected as new capacity comes online.
RBC recommends Cliffs as a "highly levered" North American play.
Shares of Cliffs are off about 1.6 percent today. RBC rates the stock at Sector Perform with a price target of $32.
Competitors to keep in mind include US Steel (NYSE: X), Rio Tinto (NYSE: RIO), Vale SA (NYSE: VALE), and BHP Billiton (NYSE BHP), among others.
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 $35.78 yesterday.
According to RBC Capital's Robin Kozar, the recent strength in iron ore prices is "sustainable" into the first-quarter of 2013 as light supplies from India, declining inventories in China, healthy margins in China, and seasonal weakness in the Chinese domestic supply all come into play.
Though pricing is expected to peak in the first quarter, Kozar and his team expect iron ore prices will remain "well supported" into the first-half of the year. Kozar sees first-quarter pricing at $130 per metric ton.
Heading into the latter half of 2013, easing in prices is expected as new capacity comes online.
RBC recommends Cliffs as a "highly levered" North American play.
Shares of Cliffs are off about 1.6 percent today. RBC rates the stock at Sector Perform with a price target of $32.
Competitors to keep in mind include US Steel (NYSE: X), Rio Tinto (NYSE: RIO), Vale SA (NYSE: VALE), and BHP Billiton (NYSE BHP), among others.
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 $35.78 yesterday.
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