Barclays Maintains an 'Overweight' on Joy Global; Remains a Top Pick Heading Into Q3
Barclays Maintains an 'Overweight' on Joy Global (JOYG); Remains a Top Pick Heading Into Q3
August 26, 2011 1:00 PM EDT
Barclays maintains an 'Overweight' on Joy Global (NASDAQ: JOYG), lowers price target by $2 to $112.
Barclays analyst says, "Joy Global remains one of our favorite names under our coverage going into FY3Q earnings. We think the company's outlook remains favorable with significant expected demand for equipment coming from large miners' capex plans in 2011 and 2012 and what we believe will be continued improvement in margins based on a good pricing environment and continuing operational improvements."
"We are updating our FY3Q and FY11 EPS forecasts to $1.48 and $5.50, respectively (from $1.50 and $5.60) to reflect the acquisition of LeTourneau and related purchase accounting expenses...We raise our JOYG 2012 EPS estimate to $7.00 from $6.70 given expected accretion from LeTourneau..."
"Growth in the global economy increased demand for commodities and commodity prices. Metals prices were up nearly 30 percent, and most thermal coal prices increased more than 20 percent. As a result, worldwide mining production continued at a high level. Mining customers are increasing their investment, which is driving significant demand for our large mining products and higher parts sales".