We are encouraged by the long-term fundamentals of the mining industry, which provides Joy Global (JOYG) with substantial growth potential as conditions improve in the U.S., China and India.
The company ended fiscal 2010 with a positive earnings surprise on strong overseas sales growth. Along with a robust 2011 outlook and improving mining industry fundamentals, this outperformance has pulled up the company’s forward estimates.
Additionally, management’s impressive cost-structuring initiatives, together with expectations of increased spending plans on part of the mining industry, should help the company stay ahead of the curve, in our view. We see Joy Global shares performing ahead of the broader market going forward and upgrade our recommendation to Outperform.
JOY GLOBAL INC (JOYG): Free Stock Analysis Report
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