Mining equipment maker Joy Global Inc. (
) on Thursday caught a big downgrade from analysts at UBS.
The firm said it lowered its rating on JOY from "Buy" to
"Neutral" with an $85 price target, suggesting an 8% upside to the
stock's Wednesday closing price of $78.64.
UBS noted that ultra-cheap natural gas prices are prompting U.S.
utilities to switch over from coal power. As a leading coal mining
equipment maker, JOY could then suffer from lower coal demand.
Joy Global shares fell $1.17, or -1.5%, in premarket trading
The Bottom Line
Shares of Joy Global (
) have a .89% dividend yield, based on last night's closing stock
price of $78.64. The stock has technical support in the $70-$75
price area. If the shares can firm up, we see overhead resistance
around the $85 price level.
Joy Global Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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, as well as a detailed explanation of
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