The new price target represents 80% upside from the stock's Monday closing price of $7.22.
The firm is bearish on an "evolving" macro environment and price environment after Platts reported a 35% decline in Atlantic pellet premiums to $40/dmt.
The new price point hurts the company's sales margins by $10/lt annually, according to B. Riley estimates.
Atlantic pellet prices could stay at these levels for the next several quarters, analyst Lucas Pipes writes.
Nonetheless, Pipes sees Cleveland-Cliffs as an attractive stock with "substantial upside."
Cleveland-Cliffs shares are rising 1.6% to $7.33.