BofA Sees 'Encouraging Signs' For Joy Global

BofA Merrill analyst Ross Gilardi highlighted "encouraging signs" for Joy Global Inc. JOY in a research note from Monday morning.

Although the analyst maintained a Neutral rating on the issue, he highlighted "Joy Global shares are up 22% over the last two days following its Q2 earnings release." Gilardi noted "some encouraging signs to suggest that earnings are up in 2017 and balance sheet risks are off the table (for now)."

The BofA Merrill analyst said "Joy continues to face some notable headwinds (US coal), the China outlook remains mixed (key for commodities) and shares are up 64% YTD."

Despite the promising signs, Gilardi reiterated a Neutral rating on Joy Global. He boosted his price objective from $22 to $24.