JP Morgan Downgrades Cleveland-Cliffs: Rising Capex And Modest Auto Demand Hamper Growth Prospects
Portfolio Pulse from Lekha Gupta
JP Morgan has downgraded Cleveland-Cliffs Inc. (NYSE:CLF) from Overweight to Neutral, lowering the price target to $17 due to rising capex needs and modest auto demand. The analyst also reduced EPS estimates for FY24 and FY25.
June 11, 2024 | 6:41 pm
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JP Morgan downgraded Cleveland-Cliffs Inc. from Overweight to Neutral, lowering the price target to $17. The downgrade is due to rising capex needs, modest auto demand, and reduced EPS estimates for FY24 and FY25.
The downgrade by JP Morgan reflects significant concerns about Cleveland-Cliffs' rising capital expenditures and modest auto demand, which are expected to hamper growth prospects. The reduced EPS estimates for FY24 and FY25 further indicate potential short-term financial challenges.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100