Our 12-month target of $24 values CLF shares at an EV/EBITDA of 6.5x our 2024 EBITDA estimate, a premium to CLF’s three-year average forward EV/EBITDA of 4.7x, but a discount to peers. CLF is insulated from the potential impact of higher costs for metallics, given its internally sourced iron ore pellets and HBI.We think CLF is in a great position to restart a dividend (and continue to buy back shares), which we think would be a positive catalyst. Risks to our outlook include weaker economic conditions in North America (especially automotive OEM build rates or nonresidential construction), lower steel prices, and higher input costs.Recommended Action: Buy CLF.More By This Author:Retail Sales, GDP, Production Show An Economy On The Right Track
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