Cleveland-Cliffs shares fall 3.1% after Morgan Stanley lowers its rating and price target to $12.50 amid U.S. steel price plateau.
Cleveland-Cliffs (CLF) dropped 3.1% in Monday trading after Morgan Stanley downgraded the stock to Equal Weight from Overweight, setting a $12.50 price target. The move reflects expectations that a supply-driven rally in U.S. steel prices is nearing its peak, limiting further upside for the sector.
Prior to the downgrade, CLF had benefited from rising steel prices, but analysts now see limited room for additional gains. The new rating aligns with a broader reassessment of steel market dynamics as supply constraints ease.
The downgrade follows a period of volatility in steel equities, with investors recalibrating positions based on pricing trends and macroeconomic signals.