Citi lowered the firm’s price target on Cleveland-Cliffs to $12.50 from $18 and keeps a Neutral rating on the shares. The firm updated steel models ahead of mid-quarter guides and upcoming results. It is below consensus, saying margins look set to be squeezed by lower prices across the board, but especially in value-add sheet products. Investors are anticipating weak results and still appear cautious on buying the dip, the analyst tells investors in a research note. Guidance for Q4 “is likely to be soft despite sheet prices finding a floor,” contends Citi. It continues to prefer Steel Dynamics (STLD) and Nucor (NUE), saying Cleveland-Cliffs (CLF) is struggling to convert higher market share into higher EBITDA per ton.
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