New York, September 18 (FinanceEnquiry.com) – Analysts at JP Morgan downgrade their rating on the shares of Cliffs Natural Resources Inc (NYSE: CLF) from OVERWEIGHT to NEUTRAL. The 12-month target price has been reduced from $55.00 to $36.00.
In a research note published on September 17, the analysts mention that with a $36 target price of December 2013, shares of Cliffs Natural Resources are rated with a NEUTRAL rating. In addition to this, over and above the 8 percent appreciation that was supposed in the base case scenario from spot prices, CLF is pricing in the iron ore prices of coming year at present.
Furthermore, in order to maintain the current dividend yield of 5.5 percent and leaving a shortfall of $357 million, the current free cash flow estimate of 2013 is approximately break-even. Investors inquire that how long Cliffs Natural Resources would be able maintain the dividend and fund its growth CAPEX at Bloom Lake, due to this, the stock would probably come under pressure if prices of iron ore do not succeed to accelerate beyond the expectations.
In particular, so to completely fund the annual per share dividend of $2.50 from free cash flow of coming year, a seaborne price of $125 per tonne is required according to the calculation. Moreover, management of the company is expected to add better long term value by delivering on its operating aims at Bloom Lake and funding the expansion of Phase II, even though the dividend is obviously significant to investors and should be sustainable in the near term, the analysts add further.
New York, May 23 (FinanceEnquiry.com) – Spice mobile phones are good enough to have because of a few but important reasons and these are its availability in cost effective rates,...
New York, May 22 (FinanceEnquiry.com) – Subsequent to a constructive lead from Wall Street, Asian stocks climbed on May 22, with Nikkei of Japan arriving at a new five and- a- half year high and...
New York, May 21 (FinanceEnquiry.com) – Corn slipped for another day as soon as US planters stepped up planting on warmer climate, improving cheerfulness that output in the largest producer will arrive at a...
New York, May 20 (FinanceEnquiry.com) – Since investors remained on the sidelines prior to the viewpoint of US Federal Reserve chairman on the economy afterward in the week, due to this, crude oil futures...
New York, May 17 (FinanceEnquiry.com) – In a bit previous, pre-market activity on May 17, the Wall Street stock futures were on the boom.
Detailing it, by 0.21 percent, the Dow Jones industrial...
New York, May 16 (FinanceEnquiry.com) – Indicating enhanced sales trends at some stage in the spring selling period and the sturdiest stance for sales over the coming six months in more than six...
New York, May 15 (FinanceEnquiry.com) – On apprehensions on the subject of increasing supplies from the United States and an austere stance for worldwide demand expansion, Brent futures fell towards $102 per barrel...
New York, May 14 (FinanceEnquiry.com) – On May 14, European stocks are probable to start higher, at the side of feebler government bonds, as soon as US retail sales statistics came above anticipations...
New York, May 13 (FinanceEnquiry.com) – Pulling Asian shares lower, oil and gold costs slipped on the very first day of this week seeing that the dollar fortified, even though on the back of the yen's fall to...
New York, May 10 (FinanceEnquiry.com) – As soon as statistics demonstrated Japanese investors had started purchasing foreign bonds, the yen dropped to a four-year low in opposition to the dollar and a three-year...
