J.P. Morgan Neutral On Joy Global

J.P. Morgan Chase & Co. is out with a research report on Joy Global

, and it has a Neutral rating and a $95 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "JOYG announced that it has entered into a share purchase agreement to buy 534.8 million shares (41%) of International Mining Machinery (

) for HKD 8.50 per share (~30% premium). IMM is one of the largest underground longwall coal mining equipment producers in China with revenues of ~$300MM in 2010. While we believe the deal makes strategic sense as the addition of IMM to JOYG's portfolio would give JOYG a greater foothold into the Chinese coal mining market, we also believe that there are a number of risks associated with the deal, which we believe investors should take into consideration (see details in the note). As a result we remain Neutral on the name, at least for now." Shares of JOYG gained 54 cents yesterday to close at $95.41, a gain of 0.57%.