Deutsche Bank Increases Their Price Target on Cleveland-Cliffs (CLF) to $150

Here's a good buy opportunity. Current Price is around $120.

Deutsche Bank increases their price target on Cleveland-Cliffs (NYSE: CLF) from $115 to $150 and reiterates their Buy rating. The firm increases their 2008 EPS estimates from $5.77 to $6.69 and 2009 EPS estimates from $9.57 to $12.52.

The firm said, "Our expectations for Cliffs realization prices were upped for both iron ore and coal. Our previous estimates for 2008 were based on a 65% increase for fines in Asia Pacific which has already been superseded by the announcement of the ~80% increase reached by Rio Tinto with Chinese steelmakers. For 2009, main changes stem from DB's revised commodities forecasts, which now call for a 5% increase for pellets (vs. 0% previously), +20% for fines (vs. previous +10%), and higher realization prices given a ~US$230/mton price assumption for standard hard coking coal. These new benchmarks imply realization prices at around US$99/lton for NA pellets, ~US$154/ston for NA coal, and ~US$113/mton for AP fines."

Cleveland-Cliffs, Inc. engages in the production and sale of iron ore pellets to integrated steel companies in North America and Australia.