Cleveland-Cliffs Stock Downgraded Amid Cost Concerns Despite Strong Performance
Analyst Philip Gibbs has lowered his rating for Cleveland-Cliffs, shifting from a 'buy' recommendation to a neutral stance. His latest update came on January 7, 2026, when he downgraded the stock from Overweight to Sector Weight. Despite this, the company’s share price has already exceeded his earlier target of $13 per share.
Gibbs originally viewed Cleveland-Cliffs as a strong investment, but recent developments have changed his outlook. He pointed to fading business growth drivers and unexpected cost increases as key concerns. These factors led him to adjust his recommendation, suggesting investors hold rather than buy more shares.
One positive aspect Gibbs highlighted was the company’s partnership with POSCO. He described this collaboration as beneficial for Cleveland-Cliffs’ operations and financial stability. However, he also noted that the company’s focus on U.S. manufacturing limits its exposure to potential demand spikes in other markets. Despite the downgrade, Cleveland-Cliffs’ stock performance has remained strong. The share price has climbed past Gibbs’ $13 target, reflecting ongoing market confidence in the company.
The downgrade reflects concerns over costs and limited growth catalysts, though the POSCO partnership remains a bright spot. Cleveland-Cliffs’ stock continues to trade above Gibbs’ previous target, indicating mixed signals for investors. His revised stance suggests a more cautious approach moving forward.
