UPDATE: Piper Jaffray Initiates Joy Global at Neutral on China Worries

Piper Jaffray initiated coverage on Joy Global

with a Neutral rating and a $51 price target. Piper Jaffray commented, "We think sufficient worldwide coal mining capacity, weak coal prices, and moderating coal demand in China will limit order volume for JOY's mining equipment, thus preventing upside in 2013. However, we think this weak outlook is already reflected in JOY's low valuation of 7.6x CY12 EPS (vs. a recent historical range in the low/mid teens). In our view JOY is doing all the right things to position itself for long-term growth, but since so much of JOY's strategy depends on China - and since our recent visits to China have unveiled persistent weakness in the economy - we think investors will stay on the sidelines until China rebounds." Joy Global closed at $57.50 on Monday.