Morgan Stanley has increased its price target for Cleveland-Cliffs (CLF, Financial) to $10.50, up from $8, while maintaining an Equal Weight rating on the stock. This adjustment follows the firm’s revisions to its estimates after Cleveland-Cliffs released its latest guidance in the wake of their second-quarter earnings report.
Cleveland-Cliffs has significantly evolved from its origins as an iron ore miner to becoming the largest integrated steel producer in North America. Despite this transformation, Morgan Stanley anticipates that the demand for automotive steel will remain subdued until the end of 2025. Furthermore, the firm expects that any free cash generated will likely be used to reduce debt rather than being distributed to shareholders.
