On Wednesday, Goldman Sachs upgraded steel and iron mining company Cliffs Natural Resources Inc (CLF) because the analysts see the stock near its downside risk target.
The analysts upgraded CLF from “Sell” to “Neutral,” but still see shares reaching $20. This target suggests a 7% downside to Tuesday’s closing price of $21.43.
Since Goldman Sachs downgraded Cliffs to “Sell” in November, the company has cut its dividend, issued new equity, and seen its stock price drop 30%. Now the analysts see a more balanced risk-reward element in the shares.
“After recent underperformance, near-term risk-reward appears more balanced and thus we upgrade the stock.” an analysts said.
Cliffs Natural Resources shares were down $2.78, or -12.97%, during pre-market trading on Wednesday. The stock is down -69.72% over the past year.
The Bottom Line
Shares of Cliffs Natural Resources (CLF) have a dividend yield of 2.80% based on last night’s closing price of $21.43 and the company’s annualized dividend payout of 60 cents per share.
Cliffs Natural Resources Inc (CLF) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.