Citi analyst Alexander Hacking has maintained their neutral stance on CLF stock, giving a Hold rating yesterday.
Alexander Hacking’s rating is based on Cleveland-Cliffs’ recent strategic decisions aimed at improving operational efficiency. The company has announced the temporary closure of its Dearborn steel mill, which will be balanced by the reactivation of the Cleveland C6 blast furnace. This move is intended to optimize production capacity without reducing overall output, as Cleveland will operate at full capacity with two blast furnaces. Additionally, the idling of two iron ore operations suggests a broader effort to enhance efficiency, although it involves a significant reduction in workforce.
Despite these efficiency measures, Cleveland-Cliffs faces challenges due to its exposure to weak auto production, which affects demand. While there has been a recent increase in steel prices and lead-times, these are attributed to seasonal and tariff-related factors rather than a strong underlying demand. Consequently, the combination of operational adjustments and market conditions has led Alexander Hacking to assign a Hold rating to Cleveland-Cliffs, reflecting a cautious outlook on the stock’s potential performance.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $11.00 price target.