From Yahoo Finance: 2025-05-29 13:31:00

Jefferies analyst downgrades Cleveland-Cliffs Inc. to ‘Hold’ from ‘Buy,’ citing concerns over US Steel competition and cutting price target to $6. The stock’s 39% YTD drop sees it near a 52-week low. Nippon’s proposed $14 billion investment in US Steel raises concerns over industry competition, impacting Cleveland-Cliffs’ outlook.

Cleveland-Cliffs, with high leverage, is vulnerable to US Steel pricing changes. Analyst warns of uncertain outlook due to increased competition. Company’s debt-to-equity ratio is 1.22, predicts $2.20 loss per share in 2025. First-quarter results missed estimates, with net loss per share wider than expected. Steps taken to return to profitability include idling non-core assets, considering asset sales, and restarting blast furnace in 2026.

Cleveland-Cliffs is a steel producer focusing on flat-rolled steel and automotive industry components. Company faces challenges from US Steel sector investments. Despite potential as an investment, AI stocks may offer greater return potential with lower risk. Consider exploring AI stocks for promising opportunities.

Read more: Jefferies Downgrades Cleveland-Cliffs on US Steel Competition Concern