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JP Morgan Downgrades Cleveland-Cliffs: Rising Capex And Modest Auto Demand Hamper Growth Prospects

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Cleveland-Cliffs Inc. (NYSE:CLF) shares are trading lower after JP Morgan analyst Bill Peterson downgraded the stock from Overweight to Neutral and lowered the price target to $17 (from $23).

The re-rating reflects reduced price forecasts for value-add and plate, rising capex needs through 2028, and limited near-term growth compared to industry peers.

The analyst observes auto inventories largely replenished, with May ending at 48 days of supply, aligned with JPM’s Auto Research team’s view of the new norm at ~46 days, down from pre-COVID levels of ~60 days.

S&P Mobility forecasts a modest 0.6% year-on-year …

Full story available on Benzinga.com

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