Cliffs Natural Resources started at Hold by Brean, which notes challenges

|About: Cliffs Natural Resources Inc. (CLF)|By:, SA News Editor

Cliffs Natural Resources (CLF -0.8%) is initiated with a Hold rating and $22 price target at Brean Capital, which sees CLF's valuation as fair with the stock likely to be range-bound over the next 12 months.

The firm notes two key challenges for CLF: costs at the Canadian operations need to be reduced substantially for the mines to remain competitive, and CLF has limited time and capital to achieve this goal as iron ore prices are moving against it.

Brean thinks Bloom Lake Phase II should be developed, given its long-term iron ore estimate of $110/metric ton.