NEW YORK (TheStreet) -- Cliffs Natural Resources (CLF) was gaining 2% to $16.41 Monday after Macquarie upgraded the stock to "neutral" from "underperform" ahead of the company's annual general meeting.
The analyst firm raised its price target for the company to $17 from $10. Macquarie analysts expect positive results from Cliffs' proxy battle with Casablanca Capital. The activist investor could gain control of Cliffs' board of directors and replace its CEO at the company's annual general meeting Tuesday.
Macquarie also cited Cliffs' guidance for the recovery of its U.S. iron ore division, and cost reduction in its eastern Canada mine.
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TheStreet Ratings team rates CLIFFS NATURAL RESOURCES INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLIFFS NATURAL RESOURCES INC (CLF) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, poor profit margins, weak operating cash flow and generally high debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows: