Cleveland-Cliffs (CLF) shares declined Monday following a Morgan Stanley downgrade. The firm lowered its rating on the steel producer to Equalweight from Overweight.
The stock has rallied 50% since April. Analysts believe this surge already reflects the strong outlook for steel prices. This move suggests a more balanced risk-reward profile for the company.
Shares fell 2.4% during Monday's premarket trading session. Morgan Stanley increased its price target to $12.50 from $12.00. The firm cited an improved pricing environment for steel for the target adjustment.