KeyBanc Upgrades Ratings on Bucyrus (BUCY) and Joy Global (JOYG) to Buy

May 26, 2009 7:31 AM EDT

KeyBanc upgrades ratings on Bucyrus International, Inc. (NASDAQ: BUCY) and Joy Global Inc. (NASDAQ: JOYG) from HOLD to BUY with respective price targets of $40 and $48.

KeyBanc analyst says, "In our view, over the coming months the global economy is likely to experience either: 1) increasing stability and demand; or 2) inflation-driven increases in commodity prices. We believe either or both of those outcomes would provide a positive catalyst for the respective shares. Despite widespread expectations for a slow recovery and a general sense of caution stemming from the speed of demand destruction over the past nine months, we believe evidence exists to suggest a gradually improving outlook, as the negative rate-of-change in the economy appears to be decelerating."

"We are maintaining our respective FY09 and FY10 estimates for BUCY of $3.10 and $1.65. BUCY is trading at 7.7x our FY09 estimate and 14.4x our FY10 estimate...We are also maintaining our respective FY09 and FY10 estimates of $3.32 and $1.98 for JOYG. JOYG is trading at 8.8x our FY09 estimate and 14.8x our FY10 estimate."

Related Categories

Upgrades

Stocks Mentioned

Related Entities

• KeyBanc

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?