Company Update (NYSE:CLF): Cliffs Natural Resources Inc Terminates Pellet Supply Agreement with Essar Algoma
Cliffs Natural Resources Inc (NYSE:CLF) announced that, effective October 5, 2015, it has terminated its Pellet Sale and Purchase Agreement with Essar Algoma. Cliffs’ decision was made as a result of Essar Algoma’s multiple and material breaches under the agreement. While the agreement has been terminated, Cliffs remains open to discussing supplying Essar with pellets on commercially reasonable terms consistent with a just-in-time iron ore supply (Original Source)
Shares of Cliffs Natural Resources are down 3.13% to $3.40, in after-hours trading. CLF has a 1-year high of $11.70 and a 1-year low of $2.28. The stock’s 50-day moving average is $3.28 and its 200-day moving average is $4.24.
On the ratings front, CLF has been the subject of a number of recent research reports. In a report released yesterday, Deutsche Bank analyst Jorge Beristain maintained a Hold rating on CLF, with a price target of $3, which represents a slight downside potential from current levels. Separately, on September 24, Macquarie’s Aldo Mazzaferro maintained a Buy rating on the stock and has a price target of $6.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jorge Beristain and Aldo Mazzaferro have a total average return of -16.1% and -21.2% respectively. Beristain has a success rate of 24.5% and is ranked #3744 out of 3770 analysts, while Mazzaferro has a success rate of 26.7% and is ranked #3615.
Overall, one research analyst has rated the stock with a Sell rating, 3 research analysts have assigned a Hold rating and one research analyst has given a a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $2.00 which is -33.3% under where the stock opened today.
Cliffs Natural Resources Inc is a mining and natural resources company. The Company is a supplier ofiron ore pellets to the North American steel industry from itsmines and pellet plants located in Michigan and Minnesota.