KeyBanc Says Cleveland-Cliffs Inc. (CLF)' Bullish Catalysts Are Fully Reflected in Shares

We recently compiled a list of the 7 Best Rare Earth Stocks to Buy According to Hedge Funds. Cleveland-Cliffs Inc. tops our list for being one of the best rare earth stocks.

Investing reported on January 7, 2026, that KeyBanc Capital Markets analyst Philip Gibbs downgraded CLF from Overweight to Sector Weight and removed his previous price target. The downgrade was primarily a valuation-driven decision after the stock exceeded the firm’s prior $13.00 price objective.

Gibbs noted that while the company’s strategic “bullish catalysts”- such as gaining market share in automotive contracts, strengthening liquidity, and selling non-core assets- are successfully materializing, they are now fully priced into the shares. Furthermore, the analyst expressed concern that CLF’s costs are coming in slightly higher than expected due to a “richer product mix,” leading to a more cautious outlook for the carbon sector in 2026.

Cleveland-Cliffs Inc. (NYSE:CLF) is primarily a steel producer and iron ore mining company, but it has begun strategically exploring rare earth element (REE) potential at select mine sites in the United States. This move aligns with the growing U.S. demand for domestic rare earths and critical minerals, which are essential for electric vehicles, wind turbines, defense systems, and electronics.

While we acknowledge the potential of CLF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.