Morgan Stanley analyst Carlos De Alba downgraded Cleveland-Cliffs to Equal Weight from Overweight with a price target of $20, down from $21.50. The firm’s bottom-up analysis points to a “modest” 2.1% steel demand growth in 2024, which combined with rising capacity will lead to declining prices, the analyst tells investors in a research note. Morgan Stanley says that while U.S. Steel will be supported by Nippon’s bid and Cleveland-Cliffs will generate strong cash flow, it now sees limited upside to both stocks. After a strong rally in Q4, steel prices have started to decline, which will continue in 2024, contends the firm.
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