Cleveland?Cliffs Extends Rally After KeyBanc Upgrade

Cleveland?Cliffs(NYSE:CLF) keep climbing After KeyBanc raised its rating and nudged the price target to $14, the stock jumped another 7% on Tuesday.

That follows Monday's 12% surge after Q2 results topped expectations with leaner operations and stronger auto?steel sales. Philip Gibbs at KeyBanc says tweaks to Section 232 tariffs and a shift toward onshoring are giving CLF an edge.

He also trimmed his full?year loss forecast to $1.85 per share (down from $2.20) and lifted 2025 EBITDA estimates to $419 million from $200 million.

Management meanwhile calls the company asset rich and has tapped J.P. Morgan to shop non?core mines and processing plants. If those sales fetch billions, it could seriously cut leverage.

Turning non?core assets into cash and holding margin gains would bolster the balance sheet and validate the bullish outlook. That makes CLF a stock to watch if you believe in the auto?steel story.

Keep an eye on any announcements about those asset sales and the Q3 update. They'll tell us whether Cleveland?Cliffs can keep this momentum going.