J.P. Morgan Reiterates Neutral on Joy Global (JOYG)

J.P. Morgan is out with a research report this morning, where it reiterates its Neutral rating on Joy Global Inc.

; it has a $63.00 price target on the stock, up from $60.00. The JPM analysts cited the company’s recent earnings report, which was better than expected on the EPS side and slightly worse than expected on the revenue side. The company also updated its guidance for FY 2010: it goes from $3.3 billion to $3.4 billion to $3.35billion to $3.4 billion vs. prior consensus of $3.4B. JOYG also raised its EPS guidance from $3.85 to $4.00 to $4.10 to $4.15 vs. prior consensus of $4.01. The analysts noted that demand in China is accelerating as the government is driving mechanization and JOYG’s installed base is now driving aftermarket demand. The JPM analysts remarked, “We are raising our FY’10 EPS estimate to $4.14 (from $3.93) and our FY’11 EPS estimate to $4.65 (from $4.42). We maintain our Neutral rating on JOYG while raising our TP to $63 (from $60); we believe that the stock will trade in line with macro news from global markets.”