Cleveland-Cliffs proposes $750M senior notes offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 04 2024
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Source: SeekingAlpha
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Analyst Views on CLF
Wall Street analysts forecast CLF stock price to rise
9 Analyst Rating
2 Buy
5 Hold
2 Sell
Hold
Current: 9.770
Low
5.75
Averages
12.78
High
17.00
Current: 9.770
Low
5.75
Averages
12.78
High
17.00
About CLF
Cleveland-Cliffs Inc. is a steel producer with a focus on value-added sheet products, particularly for the automotive industry in North America. The Company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Its offering includes advanced high-strength steel, hot-dipped galvanized, aluminized, galvalume, electrogalvanized, galvanneal, hot-rolled coil (HRC), cold-rolled coil, plate, grain oriented electrical steel (GOES), non-oriented electrical steel (NOES), stainless steels, tool and die, stamped components, and slabs. Its Other Businesses primarily include the Tubular and Tooling and Stamping segments that provide customer solutions with carbon and stainless-steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components and complex assemblies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cleveland-Cliffs to Announce Q2 2026 Earnings Results
- Earnings Announcement Schedule: Cleveland-Cliffs is set to release its Q2 2026 earnings results before the U.S. market opens on July 23, 2026, reflecting the company's latest performance in steel production.
- Analyst Conference Call: The company invites investors and analysts to a conference call at 8:30 AM ET on the same day to discuss the earnings results, enhancing transparency and fostering communication with stakeholders.
- Company Background: Cleveland-Cliffs is a leading North American steel producer focused on value-added sheet products for the automotive industry, highlighting its significant role in the sector.
- Vertical Integration Advantage: The company operates a fully integrated supply chain from iron ore mining to finished steel production and processing, ensuring production efficiency and product quality, which supports its competitive position in the market.
See More
Cleveland-Cliffs Secures $400M Contract for Electrical Steel
- Significant Contract Value: Cleveland-Cliffs Steel has secured a maximum $400 million contract, which spans five years and is set for completion by September 8, 2030, indicating strong demand and market positioning in the electrical steel sector.
- Military Support: The contract supports multiple U.S. military services, including the Army, Navy, Air Force, Marine Corps, and Space Force, highlighting the company's importance in the defense sector and potential for long-term collaboration.
- Clear Funding Source: The contract is funded under fiscal 2025–2029 transaction funds, ensuring financial stability for the project and providing predictable revenue streams for the company.
- Strategic Implications: By collaborating with the Defense Logistics Agency, Cleveland-Cliffs not only solidifies its leadership in the electrical steel industry but also lays the groundwork for future expansion and technological innovation.
See More
Morgan Stanley Downgrades Cleveland-Cliffs Rating
- Rating Downgrade Impact: Morgan Stanley downgraded Cleveland-Cliffs from Overweight to Equal Weight with a $12.50 price target, resulting in a 3.1% drop in the stock on Monday, indicating that the market's expectations for a rally in steel prices are nearing saturation.
- Market Outlook Analysis: Analyst Carlos De Alba noted that Cleveland-Cliffs' stock has rallied approximately 50% since April, creating a more balanced risk-reward profile, and while higher steel prices are expected to support earnings in the near term, the stock's upside appears limited compared to peers.
- Steel Price Forecast: With U.S. hot-rolled coil prices climbing to around $1,140 per ton, Morgan Stanley raised its near-term steel price forecasts, driven by tight domestic supply and rising import costs, but anticipates that increased domestic production and rising imports will lead to price declines in 2027 and 2028.
- Peer Comparison: Among North American steel producers, De Alba maintains an Overweight rating only on Commercial Metals (CMC), citing overly discounted concerns regarding new rebar supply, while keeping Equal Weight ratings on Nucor (NUE) and Steel Dynamics (STLD), reflecting differing market perceptions of these companies.
See More
Market Dynamics and Corporate Mergers Overview
- Muted Market Start: The new trading week begins with the S&P 500 indicated flat while the tech-heavy Nasdaq shows slight gains, and WTI crude oil is trading around $76.50 per barrel, reflecting cautious market sentiment regarding economic outlook.
- Abbvie Acquires Apogee: Abbvie is acquiring Apogee Therapeutics for $10.9 billion to strengthen its immunology portfolio, particularly competing with Johnson & Johnson's Tremfya through its top drug Skyrizi, which is expected to enhance Abbvie's competitive edge in the biopharmaceutical market.
- CRH Acquires Arcosa: CRH is acquiring Arcosa for $8.5 billion, stating that the acquisition is highly complementary amid growing demand for energy and utility infrastructure, which is expected to further solidify CRH's position in the construction materials market.
- Estee Lauder Buy Rating Reinstated: Goldman Sachs has reinstated a buy rating for Estee Lauder with a price target of $100, as analysts believe the market is underestimating the company's growth momentum, especially after it walked away from merger talks with Spanish beauty peer Puig.
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Key Wall Street Rating Updates on Monday
- Tesla Rating Maintained: Jefferies raised Tesla's price target from $350 to $375, indicating that the stock did not sell off ahead of the SPCX IPO, which suggests a consensus on a potential merger that could turn TSLA into a tracker to minimize shareholder dilution risk.
- Kimco Realty Upgrade: Wolfe upgraded Kimco Realty from Peer Perform to Outperform with a price target of $28, anticipating approximately a 16% total return, reflecting strong fundamentals and signaling a recovery potential in the real estate market.
- Cleveland-Cliffs Downgrade: Morgan Stanley downgraded Cleveland-Cliffs from Overweight to Equal Weight with a new price target of $12.5, indicating a more balanced risk-reward profile in line with peers, reflecting a cautious market sentiment towards the stock.
- Micron Technology Reiteration: Bernstein raised Micron's price target from $510 to $1,300 while maintaining an Outperform rating, driven by optimistic forecasts for conventional memory and high bandwidth memory pricing, highlighting a robust recovery in the semiconductor sector.
See More
XME ETF 52-Week Price Analysis
- Price Range Analysis: The XME ETF has a 52-week low of $65.09 and a high of $135.6764, with the latest trade at $121.31, indicating relative stability and potential investment appeal in the current market.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average can provide valuable insights for investors, aiding in more informed trading decisions based on market trends.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing notable inflows (new units created) or outflows (old units destroyed), allowing for assessment of their impact on underlying assets and market trends.
See More
Cleveland-Cliffs to Announce Q2 2026 Earnings Results
- Earnings Announcement Schedule: Cleveland-Cliffs is set to release its Q2 2026 earnings results before the U.S. market opens on July 23, 2026, reflecting the company's latest performance in steel production.
- Analyst Conference Call: The company invites investors and analysts to a conference call at 8:30 AM ET on the same day to discuss the earnings results, enhancing transparency and fostering communication with stakeholders.
- Company Background: Cleveland-Cliffs is a leading North American steel producer focused on value-added sheet products for the automotive industry, highlighting its significant role in the sector.
- Vertical Integration Advantage: The company operates a fully integrated supply chain from iron ore mining to finished steel production and processing, ensuring production efficiency and product quality, which supports its competitive position in the market.
See More
Cleveland-Cliffs Secures $400M Contract for Electrical Steel
- Significant Contract Value: Cleveland-Cliffs Steel has secured a maximum $400 million contract, which spans five years and is set for completion by September 8, 2030, indicating strong demand and market positioning in the electrical steel sector.
- Military Support: The contract supports multiple U.S. military services, including the Army, Navy, Air Force, Marine Corps, and Space Force, highlighting the company's importance in the defense sector and potential for long-term collaboration.
- Clear Funding Source: The contract is funded under fiscal 2025–2029 transaction funds, ensuring financial stability for the project and providing predictable revenue streams for the company.
- Strategic Implications: By collaborating with the Defense Logistics Agency, Cleveland-Cliffs not only solidifies its leadership in the electrical steel industry but also lays the groundwork for future expansion and technological innovation.
See More
Morgan Stanley Downgrades Cleveland-Cliffs Rating
- Rating Downgrade Impact: Morgan Stanley downgraded Cleveland-Cliffs from Overweight to Equal Weight with a $12.50 price target, resulting in a 3.1% drop in the stock on Monday, indicating that the market's expectations for a rally in steel prices are nearing saturation.
- Market Outlook Analysis: Analyst Carlos De Alba noted that Cleveland-Cliffs' stock has rallied approximately 50% since April, creating a more balanced risk-reward profile, and while higher steel prices are expected to support earnings in the near term, the stock's upside appears limited compared to peers.
- Steel Price Forecast: With U.S. hot-rolled coil prices climbing to around $1,140 per ton, Morgan Stanley raised its near-term steel price forecasts, driven by tight domestic supply and rising import costs, but anticipates that increased domestic production and rising imports will lead to price declines in 2027 and 2028.
- Peer Comparison: Among North American steel producers, De Alba maintains an Overweight rating only on Commercial Metals (CMC), citing overly discounted concerns regarding new rebar supply, while keeping Equal Weight ratings on Nucor (NUE) and Steel Dynamics (STLD), reflecting differing market perceptions of these companies.
See More
Market Dynamics and Corporate Mergers Overview
- Muted Market Start: The new trading week begins with the S&P 500 indicated flat while the tech-heavy Nasdaq shows slight gains, and WTI crude oil is trading around $76.50 per barrel, reflecting cautious market sentiment regarding economic outlook.
- Abbvie Acquires Apogee: Abbvie is acquiring Apogee Therapeutics for $10.9 billion to strengthen its immunology portfolio, particularly competing with Johnson & Johnson's Tremfya through its top drug Skyrizi, which is expected to enhance Abbvie's competitive edge in the biopharmaceutical market.
- CRH Acquires Arcosa: CRH is acquiring Arcosa for $8.5 billion, stating that the acquisition is highly complementary amid growing demand for energy and utility infrastructure, which is expected to further solidify CRH's position in the construction materials market.
- Estee Lauder Buy Rating Reinstated: Goldman Sachs has reinstated a buy rating for Estee Lauder with a price target of $100, as analysts believe the market is underestimating the company's growth momentum, especially after it walked away from merger talks with Spanish beauty peer Puig.
See More
Key Wall Street Rating Updates on Monday
- Tesla Rating Maintained: Jefferies raised Tesla's price target from $350 to $375, indicating that the stock did not sell off ahead of the SPCX IPO, which suggests a consensus on a potential merger that could turn TSLA into a tracker to minimize shareholder dilution risk.
- Kimco Realty Upgrade: Wolfe upgraded Kimco Realty from Peer Perform to Outperform with a price target of $28, anticipating approximately a 16% total return, reflecting strong fundamentals and signaling a recovery potential in the real estate market.
- Cleveland-Cliffs Downgrade: Morgan Stanley downgraded Cleveland-Cliffs from Overweight to Equal Weight with a new price target of $12.5, indicating a more balanced risk-reward profile in line with peers, reflecting a cautious market sentiment towards the stock.
- Micron Technology Reiteration: Bernstein raised Micron's price target from $510 to $1,300 while maintaining an Outperform rating, driven by optimistic forecasts for conventional memory and high bandwidth memory pricing, highlighting a robust recovery in the semiconductor sector.
See More
XME ETF 52-Week Price Analysis
- Price Range Analysis: The XME ETF has a 52-week low of $65.09 and a high of $135.6764, with the latest trade at $121.31, indicating relative stability and potential investment appeal in the current market.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average can provide valuable insights for investors, aiding in more informed trading decisions based on market trends.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing notable inflows (new units created) or outflows (old units destroyed), allowing for assessment of their impact on underlying assets and market trends.
See More
