Dahlman Rose Initiates Coverage On Cliffs

Recently, Dahlman Rose initiated coverage on Cliffs Natural Resources CLF with a Buy rating and an $85 price target. Dahlman likes that mix of domestic and international sales and exposure to core steel making raw materials (iron ore and coal). Dahlman looks for the company to be a consolidator in the mining sector, with management looking to add bolt-on acquisitions to the company's coal business in the near-term. Over the intermediate term, it would not be surprising to see Cliff's attempt a transformative deal that would substantially increase its footprint and could further diversify Cliffs' product offering into other metals. Base metal prices are continuing to rally as prices climbed again last week with copper nearing YTD highs. Improving confidence in the global economy, declining inventories and a weaker dollar are behind the recent move. CLF is trading higher on the day at $62.78