Goldman Sachs Upgrades Joy Global, Inc. (JOYG) To Buy Rating

Analysts Jerry Revich and Terry Darling at Goldman Sachs have upgraded Joy Global, Inc. (NASDAQ: JOYG) from Neutral to Buy rating. The price target has been raised from $56 to $61.

Analysts have also raised 2010-2012 EPS estimates for Joy Global, Inc. by 5% to reflect rising production rates and declining ore grades, which will provide visibility on rising aftermarket demand in 2011.

Analysts expect constraints in supply to drive key commodity prices 10%-20% higher in 2011, which will provide visibility on similar increases in capex. Also, analysts expect equipment manufacturers to benefit from rising reserve replacement costs.