Cliffs Natural Resources -1.8% on Wells Fargo downgrade

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

Cliffs Natural Resources (CLF) -1.8% premarket after Wells Fargo downgrades shares to Underperform from Market Perform and lowers its valuation range to $12-$14 from $19-$24 due to a challenging macro environment.

Global spot pricing is weakening due to a slowdown in China, excess inventories, and ramping supply from low cost miners, the firm says as it lowers its estimated 2014 EPS to $0.55 from $1.75.

While the firm likes the new CEO and sees value in shares if management sells high cost assets, it is not yet convinced the efforts will be enough to keep shares afloat.