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Investing.com - KeyBanc has raised its price target on Cleveland-Cliffs (NYSE:CLF) to $15.00 from $14.00 while maintaining an Overweight rating following the company’s third-quarter 2025 earnings report. The stock, currently trading at $13.13, has shown remarkable momentum with a 68% surge over the past six months. According to InvestingPro analysis, the stock is trading near its Fair Value.
The investment firm cited "greater upside optionality" associated with Cleveland-Cliffs’ memorandum of understanding with a foreign steelmaker as the primary reason for the price target increase. KeyBanc characterized CLF as a "special situation stock in the near term" due to this partnership, which it believes could "unlock a substantial range of value creation." InvestingPro data reveals several challenges, including significant debt burden and negative EBITDA of $105 million in the last twelve months.
Despite the higher price target, KeyBanc reduced its 2025 EBITDA forecast for Cleveland-Cliffs to $126 million from $265 million previously. The firm’s fourth-quarter 2025 EBITDA estimate was cut to $60 million from $195 million, reflecting expectations for lower volume, weaker non-automotive pricing and mix, and approximately $60 million in maintenance expenses. For deeper insights into CLF’s financial health and 12+ additional ProTips, visit InvestingPro, where you’ll find comprehensive analysis in the Pro Research Report.
KeyBanc noted particularly "recessed conditions in Canada absent trade actions" as a factor in the weaker non-automotive outlook. The firm’s analysis indicates Cleveland-Cliffs has made structural cost improvements during the first half of 2025.
According to KeyBanc, Cleveland-Cliffs’ fourth-quarter 2025 guidance for flat quarter-over-quarter steel unit costs includes both incremental maintenance expenses and richer automotive mix, which the firm views as further evidence of the company’s structural cost improvements.
In other recent news, Cleveland-Cliffs reported its third-quarter 2025 earnings, showing mixed financial results. The company posted an earnings per share of -$0.45, aligning with analyst forecasts, but revenue fell short at $4.7 billion compared to the expected $4.9 billion. Despite this revenue miss, Cleveland-Cliffs’ stock experienced a notable surge, driven by strategic initiatives and operational efficiencies. BofA Securities responded by raising its price target for Cleveland-Cliffs to $14.50 from $12.50, highlighting the company’s strong adjusted EBITDA of $143 million, which surpassed analyst estimates. The firm cited better price realization and mix as factors that offset lower shipments during the quarter.
Additionally, Wells Fargo downgraded Cleveland-Cliffs from Equal Weight to Underweight, expressing concerns over the stock’s valuation following a recent rally. The firm set a price target of $11.00, describing the stock’s 21.5% surge as "unwarranted" despite several positive company announcements. These developments reflect varied analyst perspectives on Cleveland-Cliffs, with differing views on the company’s valuation and future performance.
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