Cliffs Natural Resources: The Risk/Reward Is Balanced At Today’s Valuation Level, Says Axiom
In a research report issued today, Axiom analyst Gordon Johnson upgraded shares of Cliffs Natural Resources (NYSE:CLF) to Hold from Sell, while his price target is unchanged at $9/share, which represents a slight upside potential from current levels.
Johnson noted, “While we certainly see further downside as possible, we see the risk/reward as balanced at today’s share price/valuation level; given the stock fell -52% at its trough set 10/10/14 from our last update 7/23/14 (where we strongly recommended being short) and has corrected roughly -60% since our initiation of coverage when the shares were trading at ~$25/shr, we take this opportunity to move to the sidelines pending C3Q14 results.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gordon Johnson has a total average return of 23.0% and a 73.3% success rate. Johnson has a 47.9% average return when recommending CLF, and is ranked #34 out of 3332 analysts.