JP Morgan Downgrades Cleveland-Cliffs: Rising Capex And Modest Auto Demand Hamper Growth Prospects
JP Morgan Downgrades Cleveland-Cliffs: Rising Capex And Modest Auto Demand Hamper Growth Prospects
S&P Mobility forecasts a modest 0.6% year-on-year decline in US LV production for 2025, signaling reduced demand from restocking, says the analyst.Cleveland-Cliffs Inc. (NYSE:CLF) shares are trading lower after JP Morgan analyst Bill Peterson downgraded the stock from Overweight to Neutral and lowered the price target to $17 (from $23).
摩根大通分析師比爾·彼得森將Cleveland-Cliffs Inc. (NYSE:CLF) 股票從超配降級爲中立，並將價格目標從23美元下調至17美元后，其股價下跌。
The re-rating reflects reduced price forecasts for value-add and plate, rising capex needs through 2028, and limited near-term growth compared to industry peers.
此次重估反應了降低增值和鋼板售價預測、2028年前期投資計劃的需求增加以及與同行業相比的有限近期增長。
The analyst observes auto inventories largely replenished, with May ending at 48 days of supply, aligned with JPM's Auto Research team's view of the new norm at ~46 days, down from pre-COVID levels of ~60 days.
分析師觀察到汽車庫存得到了大量補充，5月結束時庫存爲48天，與JPM的汽車研究團隊的新平衡水平約46天相一致，而此前水平爲約60天。
S&P Mobility forecasts a modest 0.6% year-on-year decline in US LV production for 2025, signaling reduced demand from restocking, says the analyst.
標普移動性預測，2025年美國輕型車生產將略有下降，同比下降0.6%，表明需求減少，其他股票從補貨獲利上看不到什麼優勢，這是分析師所說的。
Also, management notes weakness in EV demand and oversupply in the NOES market. Despite challenges, Cliffs is performing well and has attractive long-term prospects, writes the analyst.
此外，管理層注意到電動車需求疲軟，NOES市場供應過剩。儘管面臨挑戰，但Cleveland-Cliffs Inc.表現良好且未來長期前景看好，分析師表示。
The analyst appreciates Cliffs' improved financial position and emphasis on shareholder returns but says that many investors may prioritize cash reserves for potential mergers over debt-funded buybacks.
分析師讚賞Cleveland-Cliffs Inc.的財務狀況得到改善，並重視股東回報，但他表示，許多投資者可能會將現金儲備用於潛在的合併，而非借貸回購。
According to the analyst, Cliffs' diversified assets and vertical integration should shield it from scrap supply challenges compared to peers, and its ties to the auto industry, with fixed contract pricing, can offer earnings stability.
分析師表示，Cleveland-Cliffs Inc.的多樣化資產和垂直整合可以與同行對抗廢鋼供應挑戰，而其與汽車行業的關係和固定合同價格可以提供穩定的收益。
The analyst lowered EPS estimates to $0.25 (from $0.79) for FY24 and $1.16 (from $1.71) for FY25.
分析師將Cleveland-Cliffs Inc. 未來第四財季的每股收益預計從0.79美元下調至0.25美元，將未來第五財季的每股收益預計從1.71美元下調至1.16美元。
Price Action: CLF shares are down by 4.03% to $15.02 at the last check Tuesday.
截至本週二最後一次查詢，CLF股價下跌4.03%，至15.02美元。
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Janno Nivergall from Pixabay.
來自Pixabay的Janno Nivergall。
譯文內容由第三人軟體翻譯。