UPDATE: Morgan Stanley Upgrades Joy Global to Overweight
Morgan Stanley raised its rating on Joy Global (NYSE: JOY) from Equal-weight to Overweight and established a $74 price target.
Morgan Stanley noted, "Mining weakness is priced in with the stock 40% off its highs. We expect multiple expansion on our above-consensus EPS, with a met coal rally and reversal of coal-to-gas switching as catalysts. The 60% aftermarket mix should benefit from recent record OEM sales and offers a powerful buffer. Longer term, we see Joy as a beneficiary of secular mining strength and potential industry consolidation."
Joy Global closed at $62.45 on Wednesday.
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