$CLF,...BofA sees new leadership, same challenges for Cliffs Natural Resources
More negative sell side coverage is out for Cliffs Natural Resources (CLF -0.6%), as BofA reiterates its Underperform rating and $11 price target, apparently seeing the same challenges albeit with a little tweaking after meeting with CEO Lourenco Goncalves.
BofA says the new CEO told its analysts that CLF has hired banks to pursue a sale of Australia iron ore mining, U.S. coal mining and other operations but not core infrastructure, a departure from initial plans floated by Casablanca Capital, and is visiting U.S. and Canada ops to focus on cost cutting and decide whether to continue expansion plans in Canada or shut down entirely.
Axiom Capital thinks iron ore prices - and iron ore stocks - are heading for a big fall, and says it would initiate a short position in CLF at current share price levels.
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