Dahlman Rose Reiterates Buy on Cliffs Natural Resources

Dahlman Rose is out with its report today on Cliffs Natural Resources CLF, reiterating Buy. In a note to clients, Dahlman Rose writes, "Despite our lower earnings estimates we continue to see compelling value in the shares. We believe the company's move to gain further diversification into the seaborne iron ore market may warrant the shares trading at a higher multiple over time. In fact, given the more balanced revenue generating capability that the company now has with more exposure to emerging markets, we believe that we are being extremely conservative in applying a 5.0x EV/EBITDA multiple to our 2012 EBITDA estimate of $4.1 billion to derive our price target of $120, as the shares have historically traded at 7x forward EBITDA. We reiterate our Buy rating on Cliffs Natural Resources shares." Dahlman Rose maintains a $120 PT on CLF. At the time of posting, shares of CLF were trading pre-market at $88.20, up 0.33% from Wednesday's close.