Analysts highlighted Cleveland-Cliffs as a potential beneficiary after Jim Lebenthal endorsed the stock on CNBC’s Halftime Report Final Trades. JP Morgan maintained a Neutral rating and lifted its price target to $13, contributing to a 3.1% intraday rise to $12.15. The move appears sentiment-driven and could set up near-term upside if momentum continues.
Cleveland-Cliffs (CLF) surged 7.2% to about $12.85 after being named GM’s Supplier of the Year for 2025, aided by higher steel prices. The stock has enjoyed a 24% weekly gain and a five-day win streak, with a bullish 100-day moving average crossover that historically preceded gains about 73% of the time. However, RSI near 70 and elevated short interest imply upside may be tempered by near-term overbought conditions.
Cleveland-Cliffs reported a Q1 loss of 40 cents per share, missing analyst expectations while sales of $4.922 billion surpassed estimates. The significant drop in shares indicates negative market sentiment despite strong revenue, signaling potential challenges ahead for the company.
Cleveland-Cliffs' stock price increased significantly due to a relief rally triggered by the U.S. pausing strikes on Iran, resulting in lower oil prices. With analysts projecting a narrower loss and higher revenue for Q1, the sentiment around CLF appears cautiously optimistic ahead of its upcoming earnings report.
Cleveland-Cliffs has witnessed a dramatic 26% decline over the past nine days, erasing $1.6 billion in market capitalization, now valued at $4.6 billion. This downturn reflects broader market pressures on flat-rolled steel prices and could indicate ongoing investor sentiment challenges.
The Trump administration's potential easing of steel and aluminum tariffs may significantly impact the domestic market. Investors are bracing for increased foreign competition and reduced pricing power, which could negatively affect companies like AA in the short term.