Joy Global will face volatility in the short term but it is a buy-rated stock in the long term, said Charles Brady, analyst at BMO Capital Markets.
The mining equipment maker reported a 77 percent jump in its second-quarter earnings on Wednesday, but is still seeing slower order rates and cancellations.
“The expectation is that 2010 revenue will be down below the 2009 revenues, but that’s not an unexpected outcome,” Brady told CNBC. “We do see the stock moving higher over the next 12 to 18 months and long-term fundamentals are pretty solid.”
- Joy Global Posts Surge in Second-Quarter Profit
- Metals and Oil Prices Now
BMO Capital Markets or its affiliates received compensation products or services other than investment banking services from JOYG in the past 12 months.
Joy Global's Competitors: