Cleveland-Cliffs stock price target raised to $14.50 from $12.50 at BofA

Investing.com - BofA Securities has raised its price target on Cleveland-Cliffs (NYSE:CLF) to $14.50 from $12.50 while maintaining a Neutral rating on the stock. The company, currently trading at $15.72 with a market capitalization of $7.7 billion, has seen its stock surge 41.7% year-to-date.

The price target increase follows Cleveland-Cliffs’ third-quarter 2025 adjusted EBITDA of $143 million, which exceeded analyst estimates according to BofA Securities. The firm noted that better price realization and mix more than offset lower shipments during the quarter.

Despite the earnings beat, Cleveland-Cliffs reported a larger-than-expected free cash flow outflow of $300 million for the third quarter of 2025.

BofA Securities highlighted that Cleveland-Cliffs has signed a Memorandum of Understanding with a major global steel producer, which the company expects to be highly accretive to shareholders, though specific details have not yet been disclosed.

The firm increased its target 2026 EV/EBITDA valuation multiple to 8.0x from 7.0x, bringing it more in line with key steel industry peers, while maintaining its Neutral rating due to Cleveland-Cliffs’ high debt levels compared to competitors.

In other recent news, Cleveland-Cliffs Inc. reported its third-quarter 2025 earnings, displaying a mixed financial performance. The company posted an earnings per share of -$0.45, aligning with analyst forecasts. However, Cleveland-Cliffs’ revenue fell short of expectations, reaching $4.7 billion compared to the anticipated $4.9 billion, representing a 4.08% miss. Despite the revenue shortfall, the company’s stock experienced a notable surge, supported by strategic initiatives and operational efficiencies. Analysts from various firms have been closely monitoring these developments, although specific upgrades or downgrades were not mentioned in the report. Investors remain interested in how Cleveland-Cliffs will navigate its financial strategies moving forward. These recent developments highlight the company’s ongoing efforts to optimize its operations.

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