UPDATE: Citigroup Raises PT on Cliffs Natural Resources Following Solid Quarter Results

In a report published Monday, Citigroup analyst Brian Yu reiterated a Neutral rating on Cliffs Natural Resources (NYSE: CLF), and raised the price target from $18.00 to $20.00.

In the report, Citigroup noted, “Based on better than expected results and spending cuts, we have raised our 2013 EPS estimate to $2.52 from $1.97 and EBITDA improves to $1,221 mln from $1,151 mln. Due to this change our target price increases to $20/sh from $18/sh. We are maintaining our Neutral rating based on the near-term risk of a decline in iron ore pricing as China's steel production slows, and a $200 mln annual increase in the company's sustaining capex over the next 5 years.”

Cliffs Natural Resources closed on Friday at $19.71.