Goldman Sachs Suggests Buying Calls on Joy Global (JOYG)

Goldman Sachs is out with a research note this morning, where it suggests that traders buy calls on Joy Global Inc. (NASDAQ: JOYG) ahead of the company's earnings.

Goldman Sachs Machinery analyst, Jerry Revich, sees 29% upside to his 12-mth price target of $120 on Buy rated shares, and sees 13% upside to consensus 2QFY2011 estimate of $1.35 driven by sharply higher aftermarket demand and operating leverage.

For next quarter, he expects JOYG to report $1.63, nearly 14% above the Street's $1.43 estimate.

Goldman suggests buying the June $95.00 call for $3.55.

Joy Global Inc. is a manufacturer and servicer of mining equipment for the extraction of coal and other minerals, and ores. The company's equipment is used in mining regions throughout the world to mine coal, copper, iron ore, oil sands and other minerals.