JPMorgan Resumes Cleveland-Cliffs (CLF) at Neutral

JPMorgan analyst Bill Peterson resumes coverage on Cleveland-Cliffs (NYSE: CLF) with a Neutral rating and a price target of $7.50.

The analyst comments: "We move to a Neutral rating and $7.50 Dec-25 PT for CLF from a Not Rated designation, using a 6.5x 2026 EV/EBITDA multiple, which is a premium to CLF’s ~5.5x historical avg. and ~6.2x 1yr avg. We assign a slight premium given protectionism lending to higher through-cycle profitability for U.S.-based mills, along with national security backing from the Trump administration. This is a 1.5x discount to the 8.0x used for mini-mill peers given CLF’s debt load and less product diversification. In addition, CLF was identified as a consensus short in our June 2H Buy-Side sentiment survey (link). 2Q earnings aside, we feel the next positive catalyst could be a CAD tariff reprieve announcement in the coming weeks/months, but wouldn’t be surprised to see shares rebase lower in the meantime, offering a better entry point. Shares currently trade at 6.9x on BBG vs. 7.2x on JPMe."

For an analyst ratings summary and ratings history on Cleveland-Cliffs click here. For more ratings news on Cleveland-Cliffs click here.

Shares of Cleveland-Cliffs closed at $9.87 yesterday.

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