Cleveland-Cliffs +9% as J.P. Morgan upgrades with Street-high $15 target

|By:, SA News Editor

Cleveland-Cliffs (CLF +9.4%) surges to a fresh 52-week high, extending Friday's 13% post-earnings gains, as J.P. Morgan upgrades shares to Overweight from Neutral with a Street-high $15 price target.

JPM analyst Michael Gambardella cites CLF's strong U.S. iron ore earnings momentum and the removal of an overhang with the expected sale of Asia Pacific Iron Ore assets.

U.S. manufacturing and domestic steel market are experiencing robust activity, which is creating more demand for iron ore pellets and allowing CLF to increase its sales volume guidance and realized pricing expectation, Gambardella writes.

Also, Citi analyst Daniel Knauff sees room for CLF to move higher as the company delivers on deleveraging, begins capital returns and de-risks the HBI project the stock; Citi keeps a Buy rating and lifts its stock price target to $12 from $11.

Subscribe for full text news in your inbox