Boston, MA 10/16/2014 (wallstreetpr) – Just eleven days before the announcement of the third quarter financial results, Cliffs Natural Resources Inc (NYSE:CLF) got a mixed rating from three different brokerages on its shares in the current month. The company is slated to announce its financial results on October 27 after the market closes, and will hold a conference call the next day.
Rating Of Shares
The latest brokerage to rate the shares of Cliffs Natural Resources Inc (NYSE:CLF) were Axiom Capital, Benzinga.com reported. Its analyst Gordon Johnson II has upgraded his rating on the company’s shares to Hold from Sell rating. However, he has reduced his price objective on the company’s stock to $9.00 from $10.00.
Analyst Johnson said that since his initiation of coverage on Cliffs Natural Resources Inc (NYSE:CLF), its shares have corrected approximately 55%. As a result, the stock was now trading at a multiple of ~8x EV/EBITDA on his 2015 estimations. Besides, he said his earlier assumption was that iron ore would fetch a price of $80 metric ton.
The brokerage said that the forward market multiple would depend more on the decisions of the management than market fundamentals in the near term. Johnson said that he expected limited scope for upside as far as iron ore price till the fourth quarter of the current year and also earnings prospects. Therefore, he said that there was higher chatter around management plans and asset divestitures driving volatility in the stock. Hence, he has moved his rating to Hold.
In the current month of October itself, there were two other brokerages offering different ratings. JPMorgan Chase & Co. (NYSE:JPM) has slashed its rating to Neutral from Overweight assigned by it earlier. Another brokerage, Nomura also downgraded its rating from Buy. It is quite clear that none of the brokerages recommended a Buy rating on the stock. The Hold rating is also based on the expectations of divestitures. Its results on October 27 should provide sufficient hints to trend the way.
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