Cleveland-Cliffs shares jump as analyst ups target

Shares jumped $7.87, or 7.1 percent, to $119.19. Earlier in the session, the stock touched an all-time high of $121.95.

In a note to investors, Jorge Beristain raised his price target on shares of the Cleveland-based company to $150 from $115. The new target implies he expects shares to gain 35 percent in the next 12 months over Friday's close of $111.32.

Beristain credited the increase to sharply higher estimates for iron ore and coal prices. Previously, Beristain said he had expected a 65 percent increase in fines, or crushed ore, prices in the Asia-Pacific region for the company, but London-based Rio Tinto recently announced even higher price increases to Chinese steelmakers.

He raised his 2009 price increase estimates for several commodities as well, including iron pellets and fines and expects higher realization prices for Cleveland-Cliffs from coking coal. He reiterated his "Buy" rating on the company.

Shares of Cleveland Cliffs have surged about 120 percent since the start of the year.