NEW YORK (TheStreet) -- Shares of Cliffs Natural Resources (CLF) are soaring, higher by 4.93% to $7.24 in mid-morning trading on Tuesday, after analysts at Morgan Stanley in London believe that in terms of iron ore price downside "the worst is probably over," according to Bloomberg.
The firm told Bloomberg via email that the major factor that undercut ore prices in 2014 was the Australian-led supply surge.
On Monday, China's iron ore futures posted their strongest gains in three weeks, higher by about 2% after the People's Bank of China amended some rules to ease credit by expanding the base to calculate loan-to-deposit ratios starting in 2015, according to Reuters.
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Separately, 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 deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."