Morgan Stanley Cuts Cleveland-Cliffs (NYSE:CLF) Price Target to $12.00

Key Points

• Morgan Stanley cut its price target on Cleveland‑Cliffs from $16.80 to $12.00 while retaining an "overweight" rating, implying roughly a 23% upside from the prior close.
• Cleveland‑Cliffs reported mixed Q1 results — revenue and EPS modestly beat estimates and adjusted EBITDA improved (~$95M), but a GAAP net loss remained and an $80M one‑time energy cost highlighted cost volatility and execution risk.
• Analyst consensus is a Hold with an average price target of $12.19; the stock traded near $9.74 with a ~$5.55 billion market cap, signaling investor caution despite operational recovery signs.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) had its price target reduced by analysts at Morgan Stanley from $16.80 to $12.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage currently has an "overweight" rating on the mining company's stock. Morgan Stanley's target price suggests a potential upside of 23.27% from the company's previous close.

Several other research analysts have also recently commented on CLF. JPMorgan Chase & Co. cut their price target on Cleveland-Cliffs from $13.00 to $10.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 14th. Citigroup boosted their price target on Cleveland-Cliffs from $11.00 to $13.00 and gave the stock a "neutral" rating in a research note on Monday, February 9th. KeyCorp started coverage on Cleveland-Cliffs in a research note on Wednesday, March 25th. They issued a "sector weight" rating on the stock. Glj Research reiterated a "sell" rating and issued a $9.42 price target on shares of Cleveland-Cliffs in a research note on Monday, March 16th. Finally, Argus upgraded Cleveland-Cliffs to a "hold" rating in a research note on Monday, April 6th. Two research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Cleveland-Cliffs has a consensus rating of "Hold" and an average price target of $12.19.

Cleveland-Cliffs Stock Performance

Cleveland-Cliffs stock opened at $9.74 on Tuesday. The stock's 50 day moving average price is $9.56 and its 200 day moving average price is $11.78. The firm has a market capitalization of $5.55 billion, a PE ratio of -3.33 and a beta of 1.91. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.50 and a current ratio of 1.95. Cleveland-Cliffs has a one year low of $5.63 and a one year high of $16.70.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last released its quarterly earnings results on Monday, April 20th. The mining company reported ($0.40) EPS for the quarter, topping the consensus estimate of ($0.44) by $0.04. Cleveland-Cliffs had a negative return on equity of 18.94% and a negative net margin of 7.91%.The firm had revenue of $4.92 billion for the quarter, compared to analyst estimates of $4.84 billion. During the same period in the previous year, the company posted ($0.92) EPS. Cleveland-Cliffs's revenue for the quarter was up 6.3% on a year-over-year basis. As a group, sell-side analysts expect that Cleveland-Cliffs will post -0.36 EPS for the current fiscal year.

Insider Activity at Cleveland-Cliffs

In related news, COO Clifford T. Smith sold 200,000 shares of the business's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $10.46, for a total value of $2,092,000.00. Following the completion of the sale, the chief operating officer directly owned 560,529 shares of the company's stock, valued at $5,863,133.34. The trade was a 26.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Edilson Camara acquired 19,700 shares of the stock in a transaction that occurred on Friday, February 13th. The stock was purchased at an average cost of $10.13 per share, with a total value of $199,561.00. Following the completion of the acquisition, the director owned 41,983 shares of the company's stock, valued at $425,287.79. The trade was a 88.41% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.95% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cleveland-Cliffs

Several institutional investors have recently made changes to their positions in the stock. Louisiana State Employees Retirement System bought a new position in shares of Cleveland-Cliffs during the first quarter valued at approximately $1,398,000. Apella Capital LLC bought a new position in shares of Cleveland-Cliffs during the first quarter valued at approximately $125,000. Assenagon Asset Management S.A. bought a new position in shares of Cleveland-Cliffs during the first quarter valued at approximately $16,510,000. Cidel Asset Management Inc. grew its holdings in shares of Cleveland-Cliffs by 19.1% during the first quarter. Cidel Asset Management Inc. now owns 21,662 shares of the mining company's stock valued at $183,000 after purchasing an additional 3,477 shares during the last quarter. Finally, Total Clarity Wealth Management Inc. bought a new position in shares of Cleveland-Cliffs during the first quarter valued at approximately $629,000. 67.68% of the stock is owned by institutional investors.

Key Cleveland-Cliffs News

Here are the key news stories impacting Cleveland-Cliffs this week:

• Positive Sentiment: Company reported stronger adjusted EBITDA and demand trends in Q1, signaling operational recovery that supports longer‑term profitability expectations. Cleveland-Cliffs Inc (CLF) Q1 2026 Earnings Call Highlights: Strong EBITDA Growth Amid Energy ...
• Positive Sentiment: Management expects Q2 selling prices to rise ~$60/ton and is targeting ~$425M of cash from idled properties — potential near-term cash and margin tailwinds if realized. Cliffs expects Q2 selling prices up about $60 a ton as it targets $425M idled property cash receipts
• Positive Sentiment: CEO emphasized a “stronger position” amid geopolitical volatility and signaled a path back to profitability, which supports management credibility on recovery plans. Cleveland-Cliffs CEO touts ‘stronger position’ amid Middle East turmoil as it beats Q1 estimates
• Neutral Sentiment: Official Q1 release: revenue beat (≈$4.9B) and adjusted EBITDA ~$95M, but GAAP net loss persists — mixed fundamentals that leave valuation dependent on execution. Cleveland-Cliffs Reports First-Quarter 2026 Results
• Neutral Sentiment: Earnings call and transcript are available for detailed read on one‑offs and outlook assumptions (useful for modeling but not market moving by itself). Cleveland-Cliffs (CLF) Q1 2026 Earnings Transcript
• Negative Sentiment: Q1 included an $80M one‑time energy cost (extreme cold) that materially reduced reported EBITDA and raised concerns about cost volatility going forward. Cleveland-Cliffs stock drops on $80 million Q1 energy cost
• Negative Sentiment: Management said it is “no longer in a hurry” on a potential Posco deal, reviving strategic uncertainty about growth and capital allocation. Cleveland-Cliffs down despite narrower-than-expected Q1 loss; says no longer in hurry on Posco
• Negative Sentiment: Market reaction: shares fell despite beats as investors punish cost volatility and strategic ambiguity — shows low tolerance for execution risk until margins sustainably recover. Cleveland-Cliffs Drops 5% Despite Narrower-Than-Expected Q1 Loss as Strategic Doubts Resurface

Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc is a leading North American producer of iron ore pellets and flat-rolled steel products. Tracing its roots to 1847, the company has evolved from an iron-ore mining concern in the Great Lakes region into a fully integrated steelmaker. Today, Cleveland-Cliffs operates iron ore mining complexes in Michigan and Minnesota as well as steelmaking and finishing facilities across the United States.

The company's integrated platform begins with direct control of key raw materials, including iron ore and scrap, and extends through every stage of steel production.

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