Joy Becomes ‘More Attractive’ Target, Northcoast Says
Joy Global Inc. may attract a buyer as it becomes the only equipment maker focused on mining machinery after its competitor Bucyrus International Inc. is acquired, according to Northcoast Research Partners LLC.
“Joy Global could potentially benefit as it becomes a more attractive acquisition target,” Brian Rayle, a Cleveland-based analyst for Northcoast who rates the shares a “buy,” said in a report today. “It is the only remaining mining equipment pure player left to acquire and has the largest product offering after Caterpillar/Bucyrus.”
Caterpillar Inc., the world’s largest maker of construction equipment, said Nov. 15 it agreed to acquire South Milwaukee, Wisconsin-based Bucyrus for $8.6 billion including debt.
Joy Global fell 41 cents to $88.46 at 4:30 p.m. in Nasdaq Stock Market trading, giving the Milwaukee-based maker of P&H and Joy equipment a market value of about $9.17 billion.
“Joy Global will continue to benefit long-term from increased commodity demand from emerging markets as developing countries improve their infrastructure and consume more raw materials,” Rayle said in the report.
Sandy McKenzie, a Joy Global spokeswoman, declined to comment when contacted by phone.
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