Barclays Reiterates an 'Overweight' on Joy Global (JOYG); FY2Q11 Preview: Longer-Term Mining Thesis Intact as Quarter Approaches
JOYG Hot Sheet
Rating Summary:1 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Barclays reiterates an 'Overweight' on Joy Global (NASDAQ: JOYG), PT $111.
Barclays analyst says, "Investor expectations remain high heading into JOYG's quarter, but we think continued positive trends in projected mining capex from major international producers should support solid FY2Q11 backlog/earnings growth and a continued positive outlook. We continue to see as much as 60% yoy growth in budgeted 2011 capex for the seven largest international miners, although miners are going to be hard-pressed to spend all of their budgeted capex in 2011, which could help to extend the mining cycle several years into the future. Combined with expected better execution in 2Q as well as what we think is an underappreciated LeTourneau acquisition (in terms of potential accretion and fit), we reiterate our rating on JOYG's stock."
"We view near-term concerns stemming from Australian flooding, Bucyrus' (Nasdaq: BUCY) 1Q11 miss, and potential Chinese/Global economic slowing as an opportunity for longer term investors to buy JOYG at a discounted price...We see better execution and solid bookings for JOYG in FY2Q."
For more ratings news on Joy Global click here and for the rating history of Joy Global click here.
Shares of Joy Global closed at $89.65 yesterday, with a 52 week range of $48.05-$103.44.
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Barclays analyst says, "Investor expectations remain high heading into JOYG's quarter, but we think continued positive trends in projected mining capex from major international producers should support solid FY2Q11 backlog/earnings growth and a continued positive outlook. We continue to see as much as 60% yoy growth in budgeted 2011 capex for the seven largest international miners, although miners are going to be hard-pressed to spend all of their budgeted capex in 2011, which could help to extend the mining cycle several years into the future. Combined with expected better execution in 2Q as well as what we think is an underappreciated LeTourneau acquisition (in terms of potential accretion and fit), we reiterate our rating on JOYG's stock."
"We view near-term concerns stemming from Australian flooding, Bucyrus' (Nasdaq: BUCY) 1Q11 miss, and potential Chinese/Global economic slowing as an opportunity for longer term investors to buy JOYG at a discounted price...We see better execution and solid bookings for JOYG in FY2Q."
For more ratings news on Joy Global click here and for the rating history of Joy Global click here.
Shares of Joy Global closed at $89.65 yesterday, with a 52 week range of $48.05-$103.44.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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