It was overdone and we will see 25...I know MS has big money following - but this stock is showing a little bounce - It's like X - watch it go to 18-19 buy in ride it til 21 and drop - wait to buy back on the dip. Same here - dip to 18.25 - buy in - ride it to 21-22 wait for another pull back (if that happens) and buy in again!!! And collect the div...sell some cover calls... With China - do you think the Chinese Gov't wants to look as if they overdid their economy to the world? They anounced many months ago - a subway and more infrastructure projects. If the economy sags - watch the investment by the Chinese Gov't. Then go long once this is done....
Trouble.... MS cut the target to $14 Credit Suisse cut it to $10 and GS held firm at $20 but upgraded from a Sell to Neutral. Interestingly GS did a downgrade last Tues when the stock was trading @ 22. It sunk to 20.06. CLF hit 22.12 on Tuesday then whamo. CLF announces what looks like an insignificant asset sale Tuesday night and yesterday MS & Credit Suisse announces the downgrade. It must have cost GS a pretty penny being the market maker. Rarely do you see them do an upgrade one week from doing a downgrade.
The price targets from MS & Credit Suisse are important to watch. This stock could drift to those numbers over the next week or two. The first glide up will be when China confirms the flash PMI numbers they posted last week. Also expect a POP on earnings. CLF will beat the concensus without question. The fly in the ointment will what they give guidance on for the rest of the year. 2013 earnings are expected to be $1.75 vs the $3.50 (less write downs) in 2012. That is never good for driving price long term.
I know some people discount what analysts say about stock price targets. But when firms like GS, MS & Credit Suisse talk... the stock reacts. It has the same affect when a stock shoots up when a buyout price target is announced.