Cliffs Natural EPS estimates cut in half by Deutsche Bank

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

Cliffs Natural Resources (CLF +2.3%) has tumbled 20% in the last month but it's enjoying a dead-cat bounce today, even as Deutsche Bank is the latest to predict tougher times ahead for the iron miner.

DB is cutting its estimates for 2014-16 seaborne iron ore prices by an average of ~$10/ton (-9%) to average ~$97/ton during the period ($5/ton higher than current spot prices), reflecting the ~33% YTD price decline and the potential for lower Chinese demand.

For CLF, DB lowers its 2014-16 EBITDA estimates by 11%-29% and EPS by 46%-84%, on reductions of 3%-8% in iron ore price realizations.