Analyst Upgrades: Cliffs Natural, Hecla Mining, Seagate Tech

Analysts upwardly revised their ratings and price targets on Cliffs Natural Resources Inc (CLF), Hecla Mining Company (HL), and Seagate Technology PLC (STX)

Jul 12, 2016 at 9:09 AM
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Analysts are weighing in on miners Cliffs Natural Resources Inc (NYSE:CLF) and Hecla Mining Company (NYSE:HL), as well as data storage stock Seagate Technology PLC (NASDAQ:STX). Here's a quick roundup of today's bullish brokerage notes on CLF, HL, and STX.

  • CLF is pointed 9% higher pre-market, following a price-target hike to $10.50 from $7 at J.P. Morgan Securities. Already, the mining stock has more than quadrupled in value year-to-date -- in step with the wider commodities sector -- closing Monday at $6.72. Additional bullish brokerage attention could further boost Cliffs Natural Resources Inc shares, too. Three-quarters of the analysts tracking the stock rate it a "hold" or worse, leaving the door wide open to future upgrades.

  • CIBC upped its price target on HL to $5.25 from $4.50. However, that mark represents a 13.2% discount to yesterday's settlement at $6.05. Speaking of yesterday, Hecla Mining Company notched a three-year high of $6.15 on Monday, after the firm upwardly revised its full-year gold production estimate. Despite the technical success, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been buying to open puts over calls at a quicker-than-usual clip. Specifically, HL's 10-day put/call volume ratio of 0.17 ranks in the 71st annual percentile.

  • STX said it expects to report better-than-forecast fiscal fourth-quarter revenue and will lay off 14% of its global workforce by the end of 2017. The brokerage community has reacted positively, with Morgan Stanley upgrading its rating to "equal weight" and bumping its price target up to $27. At least eight other analysts also upped their target prices on Seagate Technology PLC. Ahead of the bell, the stock has jumped 14% after ending Monday at $24.09. Longer term, however, the shares have performed miserably -- losing nearly half their value year-over-year. One group that could find itself on the wrong end of today's potential bull gap is short sellers. Nearly 11% of STX's float is sold short, representing more than a week's worth of pent-up buying power, at the stock's typical trading levels.
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