Joy Global Upgraded by Bank of America to Buy (JOY)
Joy Global (NYSE:JOY) was upgraded by stock analysts at Bank of America from a “neutral” rating to a “buy” rating in a report issued on Friday. The firm currently has a $70.00 target price on the stock, up from their previous target price of $60.00. Bank of America’s price objective points to a potential upside of 13.45% from the stock’s previous close.
The analysts wrote, “despite a brutal coal operating environment.” Gilardi commented, “Joy’s aftermarket business (70% of sales) is putting a floor under earnings, and aftermarket orders were up 10% for the second quarter in a row.” Bank of America sees a potential upside to its $70.00 price objective as investors become confident in the earnings bottom. The analyst added that improvement in Latin American copper markets aided the increase in aftermarket orders. The company’s aftermarket book to bill is 1.1x, which Gilardi suggests “that miners may be having a more difficult time sustaining maintenance deferrals.” The backlog is currently stable at $1.5 to $1.6 billion for the fourth consecutive quarter. Bank of America concluded that a tighter natural gas market following the “harsh”
Several other analysts have also recently commented on the stock. Analysts at Robert W. Baird raised their price target on shares of Joy Global from $57.00 to $62.00 in a research note on Friday. Separately, analysts at William Blair raised their price target on shares of Joy Global from $60.00 to $65.00 in a research note on Friday. They now have an “outperform” rating on the stock. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Joy Global in a research note on Tuesday, April 1st. They now have a $61.00 price target on the stock. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and five have given a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus price target of $61.00.
Joy Global (NYSE:JOY) traded up 2.43% on Friday, hitting $63.20. The stock had a trading volume of 393,500 shares. Joy Global has a 52 week low of $47.83 and a 52 week high of $62.49. The stock’s 50-day moving average is $59.22 and its 200-day moving average is $56.82. The company has a market cap of $6.329 billion and a price-to-earnings ratio of 14.83. Joy Global also was the recipient of some unusual options trading on Wednesday. Stock traders acquired 3,633 put options on the stock. This is an increase of approximately 183% compared to the average volume of 1,286 put options.
Joy Global (NYSE:JOY) last announced its earnings results on Thursday, June 5th. The company reported $0.76 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.71 by $0.05. The company had revenue of $930.00 million for the quarter, compared to the consensus estimate of $933.02 million. During the same quarter last year, the company posted $1.73 earnings per share. Joy Global’s revenue was down 31.7% compared to the same quarter last year. On average, analysts predict that Joy Global will post $3.25 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Wednesday, June 18th. Shareholders of record on Wednesday, June 4th will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 1.30%. The ex-dividend date of this dividend is Monday, June 2nd. This is a positive change from Joy Global’s previous quarterly dividend of $0.18.
Joy Global Inc is a manufacturer and servicer of high productivity mining equipment for the extraction of coal and other minerals and ores.
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