Joy Global's Negative Earnings Trend May Not Dictate Stock Movement

Morgan Stanley's Mili Pothiwala reiterated Joy Global Inc JOY's Equal Weight rating and price target of $13.00.

The analyst thought it was "possible that management elects to lower guidance" in the near future after referencing Caterpillar Inc. CAT lowering its resource industries segment guidance and its "cautious" European mining commentary recently.

Related Link: Axiom: Stay Away From Mining Stocks

Due to the negative outlook from similar companies, the bounce in commodity prices has not been translating into results for Joy's industry, said Pothiwala. The analyst also acknowledged, however, "[E]arnings trends alone may not dictate the share price performance next week"

At time of writing, Joy Global was off 0.70 percent from its Thursday open of $17.32, trading at $17.01.

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Posted In: Analyst ColorLong IdeasPrice TargetCommoditiesReiterationMarketsAnalyst RatingsTrading IdeasMili PothiwalaMorgan Stanley
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