Cleveland-Cliffs (CLF) PT Raised by BofA to $12.50 on Strong Q2 Performance, Tariff Benefits

Core Viewpoint - Cleveland-Cliffs Inc. is highlighted as a strong growth stock under $30, with a recent price target increase by BofA from $9.50 to $12.50, maintaining a Neutral rating ahead of its Q3 2025 earnings report [1]. Financial Performance - In Q2 2025, Cleveland-Cliffs reported a $271 million improvement in adjusted EBITDA compared to the previous quarter [2]. - The company achieved shipment volumes of 4.3 million tons, reflecting a sequential increase of 150,000 tons [2]. - Operational efficiencies resulted in a $15 per ton decrease in unit costs, contrary to expectations of an increase, while the average selling price rose by $35 per ton to $1,015 per ton [2]. Liquidity and Cost Management - At the end of the quarter, Cleveland-Cliffs had liquidity of $2.7 billion [3]. - The company is on track to meet its full-year target of reducing steel unit costs by $50 per ton and has lowered its full-year 2025 expectations for combined SG&A and capital expenditures by $50 million [3]. Market Context - Cleveland-Cliffs benefits from Section 232 steel tariffs, which are seen as supportive of the domestic steel industry [3]. - The company operates as a flat-rolled steel producer in the US, Canada, and internationally, previously known as Cliffs Natural Resources Inc. [4].