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

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

Morgan Stanley's Mili Pothiwala reiterated Joy Global Inc (NYSE: 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. (NYSE: 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.

Latest Ratings for JOY

DateFirmActionFromTo
Oct 2016DowngradesBuyNeutral
Sep 2016DowngradesOutperformNeutral
Jul 2016UpgradesUnderperformHold

View More Analyst Ratings for JOY
View the Latest Analyst Ratings

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