UPDATE: Raymond James Initiates Coverage on Joy Global with Outperform Rating, $77.50 PT

In a report published Wednesday, Raymond James initiated coverage on Joy Global

with an Outperform rating and a $77.50 price target. Raymond James noted, “To account for some of the prevailing uncertainty in mining machinery demand and recent outlook reductions by its peers, we are taking a conservative approach to our forecasts. We are assuming lower than guided top-line growth resulting in a below consensus F2013E EPS forecast of $6.45. To arrive at our $77.50 target price, we use a 12.0x F2013E P/E multiple, in-line with Joy Global's comparable global equipment manufacturers and at the low end of its 10-year historical trading average.” Joy Global closed on Tuesday at $63.72.