Cleveland-Cliffs (CLF) PT Lowered to $12.50 at Citi

Citi analyst Alexander Hacking lowered the price target on Cleveland-Cliffs (NYSE: CLF) to $12.50 (from $18.00) while maintaining a Neutral rating.

The analyst comments "CLF —We set 3Q24 EBITDA at $155m vs $193m FactSet consensus and $323m in 2Q. We assume the realized price down ~$70/ton based on spot prices & lags with costs down ~$30/ton (as per guidance). The call will likely focus on Stelco/M&A, auto contracts & cost outlook. 2024E EBITDA is reduced 18% to $1.2bn (6.9x) and 2026E is reduced 25% to $1.4bn (5.7x). We reduce our view on mid-cycle EBITDA to $1.6bn (~$100/ton) vs. prior $2.0bn (~$125/ton) based on recent results. Our target price is reduced to $12.5/sh (from $18), or 6x mid-cycle. We maintain our Neutral rating."

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