Strong industrial growth in China has triggered demand for steel, resulting in higher demand for iron ore. Cleveland-Cliffs, Inc. (CLF) stands to benefit from this continued development. CLF's portfolio of both established and recent iron ore and metallurgical coal assets positions it to capitalize on global industry dynamics in 2008 and beyond.
Our outlook for the Metals industry is positive, and commodity prices are likely to lead to an increase in earnings for metal companies over the next two to three years. We believe stronger commodity prices should significantly boost revenues for CLF. As a result, we rate the shares a Buy with a target of $120.
Read the analyst note on CLF
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