Wells Fargo Initiates Cleveland-Cliffs (CLF) Coverage, Cites Cost-Cutting and Steel Price Leverage

Cleveland-Cliffs Inc. (NYSE:CLF) ranks among the best mid-cap materials stocks to buy now. On August 14, Wells Fargo began coverage of Cleveland-Cliffs Inc. (NYSE:CLF) with a $10 price target and an Equal Weight rating. The investment bank used an 8x 2026E EV/EBITDA multiple to support its target price, citing a “near-term constructive sheet price view and richer mix” as justifications.

Wells Fargo Initiates Cleveland-Cliffs (CLF) Coverage, Cites Cost-Cutting and Steel Price Leverage

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According to Wells Fargo, this value reflects the company’s “particular operating leverage to sheet prices” and is higher than the historical target multiple when compared to Cleveland-Cliffs’ trading range of 6-7x over the preceding 1-3 years.

Additionally, the firm acknowledged that Cleveland-Cliffs’ management’s “steady progress on cost-cutting and pruning underperforming assets” at the mining and steel sector.

Cleveland-Cliffs Inc. (NYSE:CLF) is the largest producer of flat-rolled steel in North America. The company’s products include advanced high-strength steel, aluminized, galvalume, enameling, hot-rolled, cold-rolled, electrogalvanized, hot-dip galvanized, and galvannealed steel.

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Disclosure: None. This article is originally published at Insider Monkey.