.jpg "Cleveland-Cliffs Inc (NYSE: CLF)")
In a report released today, Lucas Pipes from B.Riley FBR reiterated a Buy rating on Cleveland-Cliffs Inc (CLF), with a price target of $16. The company’s shares closed last Monday at $7.94, close to its 52-week low of $7.40.
Pipes noted:
“We are updating our estimates for in light of recent price movement in seaborne iron ore and domestic steel. While IODEX has decreased to $91.15/dmt, a decline of roughly 28% from 2019 highs, we continue to believe the market underestimates Cleveland-Cliffs’ current contract position. At current spot prices (IODEX: $91.15/dmt, APP: $40/ dmt, HRC: $583/t), we estimate the company would generate $491M in adjusted EBITDA on an annual basis with its Mining and Pelletizing business alone. This translates to a FCFE of 12.9% before factoring in any incremental EBITDA from HBI. Including contributions from HBI, CLF shares are trading at FCFE of 22.6% based on our estimates.”
According to TipRanks.com, Pipes has 0 stars on 0-5 star ranking scale with an average return of -4.9% and a 41.1% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Novagold Resources Inc New, and Covia Holdings Corporation.
Cleveland-Cliffs Inc has an analyst consensus of Strong Buy, with a price target consensus of $12.50.
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Based on Cleveland-Cliffs Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $161 million. In comparison, last year the company earned revenue of $869 million and had a net profit of $165 million.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CLF in relation to earlier this year.
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Cleveland-Cliffs, Inc. is an iron ore mining company. It supplies iron ore pellets to the North American steel industry from mines and pellet plants located in Michigan and Minnesota. It operates through the following segments: Mining & Pelletizing and Metallics.
