Jefferies has adjusted its rating for Cleveland-Cliffs (CLF, Financial), lowering it from a Buy to a Hold. Alongside this downgrade, the price target has been reduced to $6, a significant drop from the previous target of $10.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Cleveland-Cliffs Inc (CLF, Financial) is $9.89 with a high estimate of $15.11 and a low estimate of $5.00. The average target implies an upside of 66.45% from the current price of $5.94. More detailed estimate data can be found on the Cleveland-Cliffs Inc (CLF) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Cleveland-Cliffs Inc's (CLF, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cleveland-Cliffs Inc (CLF, Financial) in one year is $15.10, suggesting a upside of 154.21% from the current price of $5.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cleveland-Cliffs Inc (CLF) Summary page.
CLF Key Business Developments
Release Date: May 08, 2025
- Adjusted EBITDA Loss: $174 million for Q1 2025.
- Total Shipments: 4.14 million tons in Q1 2025.
- Price Realization: $980 per net ton in Q1 2025.
- Unit Cost Increase: $15 per ton due to non-core asset underperformance.
- Annual Savings from Operational Changes: Over $300 million.
- CapEx Guidance Reduction: From $700 million to $625 million for 2025.
- SG&A Expense Reduction: From $625 million to $600 million for 2025.
- Available Liquidity: Approximately $3 billion.
- Secured Capacity: $3.3 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cleveland-Cliffs Inc (CLF, Financial) is benefiting from the implementation of tariffs on foreign steel, which is expected to improve the pricing environment for domestic steel producers.
- The company is strategically positioned to benefit from the reshoring of automotive production in the United States, which is expected to increase demand for domestically produced steel.
- Cleveland-Cliffs Inc (CLF) has taken decisive actions to optimize its operating footprint, including idling non-core and loss-making assets, which is expected to result in annual savings of over $300 million.
- The company has successfully gained back market share from key automotive OEM accounts, with expectations of significant EBITDA benefits starting in the second half of 2025.
- Cleveland-Cliffs Inc (CLF) has a healthy liquidity position with approximately $3 billion in available liquidity and another $3.3 billion in secured capacity, providing financial stability.
Negative Points
- The first-quarter results were disappointing, with worse-than-expected EBITDA and cash flow due to underperforming non-core assets and low steel prices.
- The company is facing challenges with a disadvantageous slab supply contract with ArcelorMittal/Nippon Steel Calvert, which is negatively impacting margins.
- Cleveland-Cliffs Inc (CLF) has had to idle several operations, impacting approximately 2,000 employees, which could have social and operational repercussions.
- There are ongoing concerns about the impact of tariffs on international trade relationships, particularly with Canada, which could affect future business dynamics.
- The company is dealing with non-cash accounting charges related to asset idling, amounting to approximately $300 million, which affects financial performance.
