Wells Fargo Initiates Cleveland-Cliffs (CLF) Coverage, Cites Cost-Cutting and Steel Price Leverage

Cleveland-Cliffs Inc. (NYSE:CLF) ranks among the best mid-cap materials stocks to buy now. On August 14, Wells Fargo began coverage of Cleveland-Cliffs Inc. (NYSE:CLF) with a $10 price target and an Equal Weight rating. The investment bank used an 8x 2026E EV/EBITDA multiple to support its target price, citing a “near-term constructive sheet price view and richer mix” as justifications.

According to Wells Fargo, this value reflects the company’s “particular operating leverage to sheet prices” and is higher than the historical target multiple when compared to Cleveland-Cliffs’ trading range of 6-7x over the preceding 1-3 years.

Additionally, the firm acknowledged that Cleveland-Cliffs’ management’s “steady progress on cost-cutting and pruning underperforming assets” at the mining and steel sector.

Cleveland-Cliffs Inc. (NYSE:CLF) is the largest producer of flat-rolled steel in North America. The company’s products include advanced high-strength steel, aluminized, galvalume, enameling, hot-rolled, cold-rolled, electrogalvanized, hot-dip galvanized, and galvannealed steel.

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Disclosure: None. This article is originally published at Insider Monkey.