Cleveland-Cliffs Inc (NYSE:CLF) shares are trading higher on Thursday. The company seems to be bouncing back after Wednesday’s sell-off triggered by a KeyBanc Capital Markets downgrade.

What To Know: KeyBanc analyst Philip Gibbs cut his rating on Cleveland-Cliffs from Overweight to Sector Weight, saying the company's biggest catalysts have already played out and that the company is facing slightly higher costs tied to a richer product mix.

Gibbs noted that the stock's current valuation now better reflects upcoming non-core asset sales and potential strategic joint ventures with POSCO, South Korea's largest steelmaker. While a deal with POSCO could be accretive, he added that visibility around the details remains limited.

The analyst also trimmed his financial expectations. He now sees fourth-quarter EBITDA coming in at a $22 million loss, compared to his earlier forecast of a $63 million profit, citing lagging spot steel prices and higher costs. His 2026 EBITDA estimate was lowered to $1.33 billion from $1.63 billion.

CLF Analyst Ratings

Analyst actions for Cleveland-Cliffs have varied in recent months. On top of Keybanc’s rating, Wells Fargo upgraded Cleveland-Cliffs from Underweight to Equal-Weight on Nov. 14, raising the target from $11.00 to $12.00.

In contrast, Citigroup maintained a Neutral rating for Cleveland-Cliffs on Nov. 11, setting a target of $11.00, a decrease from the previous $12.00. Meanwhile, Keybanc maintained an Overweight rating on Nov. 10, however, it reduced its target from $15.00 to $13.00. Lastly, on Oct. 31, Goldman Sachs sustained a Buy rating, raising its target from $14.50 to $16.00.

CLF Price Action: Cleveland-Cliffs shares were up 1.83% at $12.25 at the time of publication on Thursday, according to Benzinga Pro.

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