Cleveland-Cliffs (CLF – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Gordon Johnson from GLJ Research maintained a Buy rating on the stock and has a $12.90 price target.
Gordon Johnson has given his Buy rating due to a combination of factors despite some disappointing financial results from Cleveland-Cliffs. The company’s recent quarterly earnings fell short of expectations, with revenue and earnings per share not meeting consensus estimates, and free cash flow missing projections significantly. However, Johnson maintains a Buy rating based on the potential positive impact of higher U.S. hot-rolled coil (HRC) spot prices, which are expected to benefit Cleveland-Cliffs’ financials in the near future.
Additionally, Johnson’s rating considers the “Trump put” effect, which refers to the strategic advantage U.S. steel companies might gain from trade policies that could lead to increased steel prices. This scenario suggests a potential surge in earnings for Cleveland-Cliffs, especially given its position as a heavily shorted stock. Despite lowering the year-end 2025 price target for Cleveland-Cliffs, Johnson still sees a significant upside potential, which supports his Buy recommendation.