Cleveland-Cliffs initiated with a Neutral at UBS

UBS analyst Andreas Bokkenheuser initiated coverage of Cleveland-Cliffs with a Neutral rating and $17 price target. While an increasingly consolidated steel sector coupled with a currently closed import arbitrage and elevated feedstock prices support HRC above $600/st into 2023, longer term iron ore and met coal pressure weighing on global steel prices and rising US EAF capacity puts margins at risk in the coming years, Bokkenheuser tells investors in a research note.