Joy Global (NYSE:JOY) Receives Lower Rating From BofA Merrill. What’s The Reasoning Behind This Move?


Joy Global (NYSE:JOY) Receives a Downgrade

BofA Merrill lowered their rating for shares of Joy Global (NYSE:JOY) from “Neutral” to “Underperform” in a comprehensive report that was shared with investors and clients on 1 December.

From a total of 20 analysts covering Joy Global Inc. (NYSE:JOY) stock, 7 rate it a ”Buy”, 3 a “Sell”, and 14 a ”Hold”. This means that 29% of the ratings are positive. The highest target price is $36 while the lowest target price is $14. The mean of all analyst targets is $21.18 with a 68.87% above today’s ($13.62) stock price. Joy Global Inc. was the topic of 17 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. BB&T Capital downgraded shares on October 19 to “Underweight” rating. UBS maintained shares with “Neutral” rating and $20.0 target share price in a report from a September 4. Barclays Capital initiated JOY stock in a recent report from September 25 with “Equal-Weight” rating. RBC Capital Markets maintained the rating on September 4. RBC Capital Markets has a “Sector Perform” rating and a $23 price target on shares. Finally, Axiom Capital downgraded the stock to “Hold” rating in a report issued on a September 15.

Approximately 6.84 million shares of stock traded hands or 97.12% up from the average. Joy Global Inc. (NYSE:JOY) has declined 63.30% since April 28, 2015 and is downtrending. It has underperformed by 61.68% the S&P500.

Analysts await Joy Global Inc. (NYSE:JOY) to reports earnings on December, 16. They expect $0.42 EPS, down 66.40% or $0.83 from last year’s $1.25 per share. JOY’s profit will be $40.09M for 8.11 P/E if the $0.42 EPS becomes reality. After $0.54 actual EPS reported by Joy Global Inc. for the previous quarter, Wall Street now forecasts -22.22% negative EPS growth.

Joy Global Inc. is a manufacturer and servicer of high productivity mining equipment for the extraction of coal and other minerals and ores. The company has a market cap of $1.30 billion. The Firm makes and market original equipment and aftermarket parts and services for both underground and surface mining and certain industrial applications. It has 5.5 P/E ratio. The Company’s equipment is used in major mining regions throughout the world to mine coal, copper, iron ore, oil sands, gold and other minerals.

According to Zacks Investment Research, “Joy Global Inc. is a worldwide leader in manufacturing, servicing and distributing equipment for surface mining through its P&H Mining Equipment division and underground mining through its Joy Mining Machinery division.(Press Release)” Get a free copy of the Zacks research report on Joy Global Inc. (JOY)