Categories: Business

Cleveland-Cliffs Stock Will Benefit From Russia’s Ukraine War. Here’s Why.

[ad_1]

Text size

Cleveland-Cliffs could benefit from a shortage of steel.


Sean Gallup/Getty Images




Cleveland-Cliffs

stock is JPMorgan’s top pick in the steel sector, the investment bank said Thursday, as Russia’s war on Ukraine hits global supply for steel. Cleveland-Cliffs stock is gaining.

In a Thursday report, JPMorgan analyst Michael Glick noted that “Russia’s invasion a month ago nearly instantly set off a butterfly effect across thesteel markets,” with the impact only beginning to be felt in North America. When the invasion began, steel exports from Russia and Ukraine almost immediately stopped, while demand in North America is set to grow. That could push steel prices up to $1,500 a ton for 2022. “If we don’t see a resumption in Black Seaexports in the coming quarters, which is our base case, it’s hard to see what isgoing to supply that demand,” Glick writes.

As a result, Glick put Overweight ratings on nearly all of the steel sector, including




Commercial Metals

(CMC),




Steel Dynamics

(STLD), and




Stelco

(STLC.Canada) (Nucor (NUE) received a Neutral rating and




U.S. Steel

(X) was rated Underweight).

Cleveland-Cliffs, however, is his favorite because it is “long raw materials via its iron ore assets, pellets with excess capacity, [hot-briquetted iron] plant, scrap business and also has key steelmaking assets for the automotive industry,” Glick writes. “These assets have clearly gained immensely in their strategic (as well as financial) value in a world where war is causing a shortage of metallics.”

Glick put a $44 price target on Cleveland-Cliffs, up 51% from Wednesday’s close of $29.16. The stock was up 11.9% to $32.62 Thursday afternoon.

Write to Ben Levisohn at ben.levisohn@barrons.com

[ad_2]
Source link
Admin

Recent Posts

How to Remove Burnt-on Grease from Your Oven

Burnt-on grease isn't just an eyesore. It stinks up the kitchen and makes cooking a…

3 weeks ago

Air India: A Journey Through Time

Hey there! Ready to embark on a historical journey with Air India? Whether you're a…

1 month ago

The Rise of Smart Altcoins: How 2025 Is Reshaping the Crypto Hierarchy

In 2017, altcoins were seen as experimental side projects to Bitcoin. By 2021, they became…

2 months ago

5 Services That Can Transform Your Shopping Center in Las Vegas into a Must-Visit Destination

Shopping centers in Las Vegas have a unique opportunity to stand out by offering not…

2 months ago

Levitra Dosage: Guidelines for Safe Use

Levitra, a widely recognized medication for treating erectile dysfunction (ED), has proven to be a…

2 months ago

Practical Tips for Carpet Cleaning on a Budget

Have you ever looked down at your carpet and wondered if there’s a budget-friendly way…

3 months ago