JOY,...Joy Global stock price target cut in half at UBS
Joy Global (NYSE:JOY) -2.1% premarket as UBS cuts its stock target price to $20 from $40 and reiterates its Neutral rating, as the company takes initiatives to catch up with deteriorating demand.
North American coal was the biggest driver behind JOY's surprisingly low service bookings, in both underground and surface segments, and management noted a goodwill impairment in underground may be imminentJOY plans to take additional measures to improve efficiency and streamline its footprint, including $60M-plus in cost reductions, and believes its actions can lift its capacity utilization to ~75% from 50%.JOY fell 14.6% yesterday after the company's guidance cut and warning of continued pressure on demand for mining equipment.
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