KeyCorp Upgrades Cleveland-Cliffs to 'Overweight', Predicts Stock Upside

What's Happening?

Cleveland-Cliffs Inc., a major player in the mining and steel industry, has been upgraded by KeyCorp from a 'sector weight' to an 'overweight' rating. This upgrade comes with a new price target of $14.00, suggesting a potential 25.79% upside from its previous close. The upgrade is part of a broader analysis by KeyCorp, which also provided earnings estimates for the company, projecting a loss of $0.30 per share in Q3 2025 and a profit of $0.42 per share in FY2026. Other analysts have mixed views, with some maintaining a 'neutral' stance and others adjusting their price targets. Cleveland-Cliffs recently reported a quarterly revenue increase of 7.5% year-over-year, despite a negative net margin and return on equity.

Why It's Important?

The upgrade by KeyCorp is significant as it reflects growing confidence in Cleveland-Cliffs' potential to recover and grow in the coming years. This could influence investor sentiment positively, potentially leading to increased stock purchases. The company's strategic position as the largest flat-rolled steel and iron ore pellet producer in North America makes it a critical player in the industrial sector. The mixed analyst ratings highlight the uncertainty in the market, but the positive outlook from KeyCorp could sway investor decisions. The company's performance and stock valuation are crucial for stakeholders, including institutional investors who hold a significant portion of the company's shares.

What's Next?

Cleveland-Cliffs is expected to continue navigating the challenges in the mining and steel industry, with a focus on improving its financial performance. The company's future earnings reports will be closely watched by investors and analysts to assess the accuracy of the current projections. Any strategic moves by the company, such as mergers, acquisitions, or operational changes, could further impact its stock performance. Additionally, market reactions to the analyst ratings and any changes in the broader economic environment will play a role in shaping the company's financial trajectory.