Joy Global Cut to “Neutral” at UBS; U.S. Coal Demand Slipping (JOY)

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Mining equipment maker Joy Global Inc. ( JOY ) 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 Thursday.

The Bottom Line
Shares of Joy Global ( JOY ) 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. ( JOY ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks


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