Cleveland-Cliffs Inc. (CLF) stock surged 5.44% in pre-market trading on Tuesday, following a series of positive analyst actions and the release of the company's second-quarter 2025 earnings call transcript. The steel and iron ore company's shares gained momentum as investors reacted to upgraded ratings and increased price targets from prominent Wall Street firms.

KeyBanc Capital Markets led the bullish sentiment by upgrading Cleveland-Cliffs to Overweight from Sector Weight, setting a price target of $14. This upgrade signifies a strong vote of confidence in the company's future prospects. Additionally, Morgan Stanley raised its price target on CLF to $10.50 from $8, while maintaining an Equalweight rating, further boosting investor optimism.

The positive outlook was reinforced by Cleveland-Cliffs' recent earnings call, where CEO Lourenco Goncalves highlighted the company's strategic advantages. Notably, Goncalves emphasized CLF's independence from imported pig iron, stating, "Cleveland-Cliffs does not rely on imported pig iron at all. We have our own hot-briquetted iron facility in Toledo, Ohio." This strategic positioning is particularly significant in light of the upcoming 50% tariff on Brazilian pig iron, set to take effect on August 1st, potentially giving Cleveland-Cliffs a competitive edge in the market.