Cliffs price target slashed at Wells Fargo, which foresees dividend cut


Wells Fargo's Sam Dubinsky cuts his price target for Cliffs Natural Resources (CLF -1%) to $7-$10 from $12-$14, saying the stock has nowhere to go but down and a dividend cut is the "next shoe to drop."

The firm has been overwhelmingly bearish on CLF in the past two months but sees continued downside risk because of potential further deterioration in iron ore prices, a probable dividend cut, and the Street resetting estimates meaningfully lower.

Wells estimates CLF is burning ~$80M in cash including capex and ~$220M including dividend payments, and views the dividend as unsustainable unless pricing recovers to $100-$110/metric ton or assets are sold.

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Comments (2)
  • chunghk
    , contributor
    Comments (345) | Send Message
     
    CLF-Analyst Sam brainless; plain & common facts; no new ideas. Shorts win, battle between Gary/Dropping. Small investors suffer both stock price & dividend cut. Hopeful 2015 or onward years. Thanks.
    4 Jun 2014, 12:20 PM Reply Like
  • bg-14
    , contributor
    Comment (1) | Send Message
     
    I own more stock than the board. I'm feeling really great. LOL. If Casa Blanca does split the company, do shareholders get decided either to go Cliffs International or Cliffs USA, cause I want USA all the way!
    18 Jun 2014, 01:08 PM Reply Like
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