Here are price target changes on April 25th for Newfield (NFX)(PCX)(WLT) and (BUCY).
RBC Capital lowered their price target on Newfield Exploration Co. (NYSE:NFX) from $99.00 to $96.00. They have an “Outperform” rating on the stock.
Brean Murray boosted their price target on shares of Patriot Coal Corp (NYSE:PCX) from $35.00 to $37.00. They have a “Buy” rating on the stock.
Brean Murray slashed their price target on Walter Energy (NYSE:WLT) from $160.00 to $156.00. They have a “Buy” rating on the stock.
FBR Capital lowered their price target on Walter Energy (NYSE:WLT) from $140.00 to $135.00. They now an “Outperform” rating on the stock.
Jefferies maintained a “Hold” rating on shares of Bucyrus International, Inc. (NASDAQ:BUCY). They have a $92.00 price target on the stock.
Showing posts with label Bucyrus. Show all posts
Showing posts with label Bucyrus. Show all posts
Monday, April 25, 2011
Thursday, December 23, 2010
Joy Global (NASDAQ:JOYG) Backlog, Earnings Growth Solid for Years
Assuming growth continues in the mining sector, Joy Global (NASDAQ:JOYG) has several strong years ahead of them, based on backlog and resultant earnings.
Barclays (NYSE:BCS) said, "After meeting with JOYG management, we continue to believe that JOYG's mining equipment business could enjoy several more years of backlog/earnings growth as visibility regarding both aftermarket and original equipment demand seems significantly higher than usual (but assuming no new recession in the near to medium term). Moreover, given a solid demand backdrop and an internal efficiency drive, we continue to see a high probability for JOYG to meet or beat our margin forecasts despite what we expect to be slowly increasing competition from Caterpillar (NYSE:CAT)/Bucyrus (Nasdaq:BUCY)."
Barclays reiterates an "Overweight" on Joy Global, which closed Wednesday at $86.75, down $0.84, or 0.96 percent. Barclays raised their price target on them from $96 to $102.
Caterpillar closed at $94.57, down $0.06, or 0.06 percent. Bucyrus closed at $89.40, down $0.05, or 0.06 percent.
Barclays (NYSE:BCS) said, "After meeting with JOYG management, we continue to believe that JOYG's mining equipment business could enjoy several more years of backlog/earnings growth as visibility regarding both aftermarket and original equipment demand seems significantly higher than usual (but assuming no new recession in the near to medium term). Moreover, given a solid demand backdrop and an internal efficiency drive, we continue to see a high probability for JOYG to meet or beat our margin forecasts despite what we expect to be slowly increasing competition from Caterpillar (NYSE:CAT)/Bucyrus (Nasdaq:BUCY)."
Barclays reiterates an "Overweight" on Joy Global, which closed Wednesday at $86.75, down $0.84, or 0.96 percent. Barclays raised their price target on them from $96 to $102.
Caterpillar closed at $94.57, down $0.06, or 0.06 percent. Bucyrus closed at $89.40, down $0.05, or 0.06 percent.
Friday, November 19, 2010
Joy Global (NASDAQ:JOYG) Gets Good/Bad from Bucyrus (Nasdaq:BUCY), Caterpillar (NYSE:CAT) Deal
As the market digests the implications of the acquisition of Bucyrus (Nasdaq:BUCY) by Caterpillar (NYSE:CAT), Joy Global (NASDAQ:JOYG) is receiving reviews of mixed blessings from the deal.
Barclays (NYSE:BCS) agrees, saying, "We think the implication of the Caterpillar (NYSE:CAT)-Bucyrus (Nasdaq:BUCY) deal announced on 11/15 is a double-edged sword for JOYG, the only other major international
competitor for BUCY on large surface/ underground mining equipment. On one hand, we think it affirms our view of a continued long-duration mining up-cycle. On the other hand, the combined CAT and BUCY could be a more difficult competitor for JOYG over the longer term, especially if the idea of "bundling" a wide array of mining products/services proves to be a significant competitive edge...Based on our increasing conviction in continued strength in mining capex for the next few years, we raise our target multiple to 17x from 16x and FY2011 EPS estimate to $4.85 from $4.65."
In the short term this should be no problem for Joy Global, and they could perform strongly on the basis of the strength in the mining sector. Over the long term, competitive challenges are sure to emerge, generating speculation if Joy may eventually be a buyout target for a large company. BHP (NYSE:BHP) anyone?
Joy closed at $75.58, gaining $0.52, or 0.69 percent. Barclays has a price target of $82 on them, increasing it from $74.
Barclays (NYSE:BCS) agrees, saying, "We think the implication of the Caterpillar (NYSE:CAT)-Bucyrus (Nasdaq:BUCY) deal announced on 11/15 is a double-edged sword for JOYG, the only other major international
competitor for BUCY on large surface/ underground mining equipment. On one hand, we think it affirms our view of a continued long-duration mining up-cycle. On the other hand, the combined CAT and BUCY could be a more difficult competitor for JOYG over the longer term, especially if the idea of "bundling" a wide array of mining products/services proves to be a significant competitive edge...Based on our increasing conviction in continued strength in mining capex for the next few years, we raise our target multiple to 17x from 16x and FY2011 EPS estimate to $4.85 from $4.65."
In the short term this should be no problem for Joy Global, and they could perform strongly on the basis of the strength in the mining sector. Over the long term, competitive challenges are sure to emerge, generating speculation if Joy may eventually be a buyout target for a large company. BHP (NYSE:BHP) anyone?
Joy closed at $75.58, gaining $0.52, or 0.69 percent. Barclays has a price target of $82 on them, increasing it from $74.
Thursday, November 18, 2010
What Now for Joy Global (Nasdaq:JOYG), Komatsu (OTC:KMTUY.PK), After Caterpillar (NYSE:CAT) Acquisition of Bucyrus (Nasdaq:BUCY)?
There is no doubt the announced acquisition of mining equipment-maker Bucyrus (Nasdaq:BUCY) by Caterpillar (NYSE:CAT) has dramatically changed the sector, and major competitors like Joy Global (Nasdaq:JOYG) and Komatsu (OTC:KMTUY.PK) have a challenge on their hands against a company that now will be able to compete in almost every aspect of mining machinery at a time the market is expected to generate increasing demand for years.
The obvious question is whether the rest of the industry will make moves to consolidate in light of the merger between Caterpillar and Bucyrus in order to generate larger scale and diversity of product lines.
Joy Global will compete against Caterpillar in the lines carried by Bucyrus, belt systems, surface drills and draglines, while Komatsu will compete against the existing line of Caterpillar, including trucks dozers, wheel loaders and excavators.
Those two companies will probably be watched closely for hints they, or others, may be ready to grow through merger and acquisition.
As for the underlying importance of the move by Caterpillar, it shows they are convinced the mining sector has a long and prosperous rode ahead of it, and now they are positioned strongly to be a major player in providing the tools needed for the industry to be successful.
The obvious question is whether the rest of the industry will make moves to consolidate in light of the merger between Caterpillar and Bucyrus in order to generate larger scale and diversity of product lines.
Joy Global will compete against Caterpillar in the lines carried by Bucyrus, belt systems, surface drills and draglines, while Komatsu will compete against the existing line of Caterpillar, including trucks dozers, wheel loaders and excavators.
Those two companies will probably be watched closely for hints they, or others, may be ready to grow through merger and acquisition.
As for the underlying importance of the move by Caterpillar, it shows they are convinced the mining sector has a long and prosperous rode ahead of it, and now they are positioned strongly to be a major player in providing the tools needed for the industry to be successful.
Wednesday, November 17, 2010
Morgan Stanley (NYSE:MS) Says Sell Joy Global (Nasdaq:JOYG)
A day after Morgan Stanley (NYSE:MS) suggested to shareholders they should sell shares in Joy Global (Nasdaq:JOYG), they've quickly rebounded, and are up over 1 percent in trading on the day so far.
Joy Global competes with Bucyrus (Nasdaq:BUCY), which Caterpillar (NYSE:CAT) is acquiring, generating the concerns over Joy's ability to compete.
Morgan Stanley cut their rating on Joy from "Equalweight" to "Underweight," although others have had a more positive response, like RBC Capital, which raised their price target on them.
Morgan Stanley analyst Robert Wertheimer, “BUCY had already been selling bundled product against JOYG,” wrote Wertheimer, and “with Cat’s added product and service expertise, the intensity will be higher. We see increased difficulty in meeting consensus estimates.”
Joy was trading at $75.25, gaining $0.73, or 0.98 percent at 2:56 PM EST.
Joy Global competes with Bucyrus (Nasdaq:BUCY), which Caterpillar (NYSE:CAT) is acquiring, generating the concerns over Joy's ability to compete.
Morgan Stanley cut their rating on Joy from "Equalweight" to "Underweight," although others have had a more positive response, like RBC Capital, which raised their price target on them.
Morgan Stanley analyst Robert Wertheimer, “BUCY had already been selling bundled product against JOYG,” wrote Wertheimer, and “with Cat’s added product and service expertise, the intensity will be higher. We see increased difficulty in meeting consensus estimates.”
Joy was trading at $75.25, gaining $0.73, or 0.98 percent at 2:56 PM EST.
Bucyrus (Nasdaq:BUCY) Downgraded by Almost Everybody After Caterpillar (NYSE:CAT) Acquisition
It seems almost everybody joined in the downgrading of Bucyrus Intl (Nasdaq:BUCY) a day after the news Caterpillar (NYSE:CAT) had acquired the mining equipment manufacturer, including Morgan Stanley (NYSE:MS), who downgraded them from "Overweight" to "Equalweight."
Bucyrus soared 29 percent the day the offer was made known.
Barclays was one of the few who kept Bucyrus where they were at, maintaining an "Equalweight" on them.
"Caterpillar and Bucyrus Intl (Nasdaq:BUCY) announced yesterday that they have entered into an agreement under which CAT will acquire BUCY in a transaction valued at approximately $8.6 billion...We view the transaction as a strong endorsement of the strength and longevity of a mining cycle that we believe is in the early stages of a multi-year expansion...According to management, the acquisition will allow CAT to deliver synergistic opportunities that will noticeably translate into improved operating profit in 2013 and beyond. CAT expects to leverage its distribution strength to support growth and sales and to reduce material, engineering, and financing costs," Barclays said.
BB&T Capital also (NYSE:BBT) downgraded them from "Buy" to "Hold." At least seven others downgraded Bucyrus as well.
Bucyrus closed Tuesday at $89.24, falling $0.56, or 0.62 percent.
Bucyrus soared 29 percent the day the offer was made known.
Barclays was one of the few who kept Bucyrus where they were at, maintaining an "Equalweight" on them.
"Caterpillar and Bucyrus Intl (Nasdaq:BUCY) announced yesterday that they have entered into an agreement under which CAT will acquire BUCY in a transaction valued at approximately $8.6 billion...We view the transaction as a strong endorsement of the strength and longevity of a mining cycle that we believe is in the early stages of a multi-year expansion...According to management, the acquisition will allow CAT to deliver synergistic opportunities that will noticeably translate into improved operating profit in 2013 and beyond. CAT expects to leverage its distribution strength to support growth and sales and to reduce material, engineering, and financing costs," Barclays said.
BB&T Capital also (NYSE:BBT) downgraded them from "Buy" to "Hold." At least seven others downgraded Bucyrus as well.
Bucyrus closed Tuesday at $89.24, falling $0.56, or 0.62 percent.
BHP (NYSE:BHP) Not Giving Up on Large Acquisition Targets
After failing to be allowed to acquire Potash Corp. (NYSE:POT) by the Canadian government, BHP Billiton (NYSE:BHP) had a lot of financial writers assume they may pull back and go after smaller acquisition targets.
According to BHP Chairman Jac Nasser that's not the case, and the company won't be lowering its target to go after what he called "second tier" assets.
Three huge failed deal attempts over the last couple of years has generated the speculation BHP may have to look for smaller assets to buy.
That's one of the problems companies the size of BHP face, is they have to acquire large targets in order to move the bottom line of the company, which CEO Marius Kloppers has been under pressure to do.
If BHP were looking only for mining assets and not general commodity assets, it would be understood that they would be very limited. But when they take into account all commodity or raw material sectors, there are a wider number of possibilities for them.
The challenge for BHP is the premium prices driving the market at this time after the majority of commodity prices have risen for some time.
An example of a company that would have made sense for them is Bucyrus (Nasdaq:BUCY), even though it was much smaller than Potash.
What Bucyrus has to offer is almost an immediate return on investment, and with the bull commodity market expected to continue on for years, even if there are temporary interruptions, Bucyrus would be the type of company, when added to a couple of more, which would have made sense for BHP.
Hitting several singles is as good as hitting a home run, but evidently BHP doesn't operate under those assumptions.
According to BHP Chairman Jac Nasser that's not the case, and the company won't be lowering its target to go after what he called "second tier" assets.
Three huge failed deal attempts over the last couple of years has generated the speculation BHP may have to look for smaller assets to buy.
That's one of the problems companies the size of BHP face, is they have to acquire large targets in order to move the bottom line of the company, which CEO Marius Kloppers has been under pressure to do.
If BHP were looking only for mining assets and not general commodity assets, it would be understood that they would be very limited. But when they take into account all commodity or raw material sectors, there are a wider number of possibilities for them.
The challenge for BHP is the premium prices driving the market at this time after the majority of commodity prices have risen for some time.
An example of a company that would have made sense for them is Bucyrus (Nasdaq:BUCY), even though it was much smaller than Potash.
What Bucyrus has to offer is almost an immediate return on investment, and with the bull commodity market expected to continue on for years, even if there are temporary interruptions, Bucyrus would be the type of company, when added to a couple of more, which would have made sense for BHP.
Hitting several singles is as good as hitting a home run, but evidently BHP doesn't operate under those assumptions.
Monday, November 15, 2010
Citigroup (NYSE:C) Says Housing Supply will Outstrip Demand for Four Years
In somewhat troubling news, Citigroup (NYSE:C) says the demand for housing won't catch up with the existing supply until about 2014.
Josh Levin, an analyst at Citigroup Inc. said in a note to clients, “It will take three to four years to work off the excess supply and reach equilibrium.” This suggests, according to Levin, that won't be “a V-shaped recovery pattern” as expected by some in the industry.
Levin said there are close to 2.1 million homes on the market that aren't needed at this time. Those homes are measured by apartments or houses built to be lived in around the year.
This is probably why Caterpillar (NYSE:CAT) made their offer for Bucyrus (NASDAQ:BUCY), as construction equipment sales are sure to be down for the duration of that low demand for homes, making the need for alternative income to be generated, which Bucyrus would do through their focus on mining equipment.
The construction industry is in for a long struggle, as will be the overall housing market for several years.
Josh Levin, an analyst at Citigroup Inc. said in a note to clients, “It will take three to four years to work off the excess supply and reach equilibrium.” This suggests, according to Levin, that won't be “a V-shaped recovery pattern” as expected by some in the industry.
Levin said there are close to 2.1 million homes on the market that aren't needed at this time. Those homes are measured by apartments or houses built to be lived in around the year.
This is probably why Caterpillar (NYSE:CAT) made their offer for Bucyrus (NASDAQ:BUCY), as construction equipment sales are sure to be down for the duration of that low demand for homes, making the need for alternative income to be generated, which Bucyrus would do through their focus on mining equipment.
The construction industry is in for a long struggle, as will be the overall housing market for several years.
Bucyrus (Nasdaq:BUCY) Explodes Over $20 a Share on Caterpillar (NYSE:CAT) Acquisition News
Mining equipment maker Bucyrus International, Inc. (Nasdaq:BUCY) has soared by over $20 a share in response to the news Caterpillar (NYSE:CAT) has acquired the company for $8.6 billion, including $7.6 billion in debt Bucyrus holds at this time.
Along with assuming the debt of Bucyrus, Caterpillar will use balance cash and equity to pay for the acquisition, which was about a 32 percent premium over the share price of Bucyrus at the time of the offer.
The deal is a good one for Caterpillar, which in the highly cyclical construction business, has added another business which can also move cyclically, but at different times, offering them a sustainability of revenue.
Bucyrus surged to $89.75, rising by $20.13, or 28.91 percent, as of 3:00 PM EST.
Along with assuming the debt of Bucyrus, Caterpillar will use balance cash and equity to pay for the acquisition, which was about a 32 percent premium over the share price of Bucyrus at the time of the offer.
The deal is a good one for Caterpillar, which in the highly cyclical construction business, has added another business which can also move cyclically, but at different times, offering them a sustainability of revenue.
Bucyrus surged to $89.75, rising by $20.13, or 28.91 percent, as of 3:00 PM EST.
JP Morgan (NYSE:JPM) Helps Caterpillar (NYSE:CAT) Land Bucyrus (Nasdaq:BUCY)
JP Morgan (NYSE:JPM), which was the sole financial advisor for Caterpillar (NYSE:CAT) in its pursuit of Bucyrus (Nasdaq:BUCY), helped the giant equipment-maker land the company for $8.6 billion. The deal includes the $7.6 billion debt held by Bucyrus.
Caterpillar will acquire Bucyrus by taking over its debt, balance sheet cash, and close to $2 billion in equity.
The deal is about a 32 percent premium over the share price of Bucyrus.
Bucyrus adds its large mining equipment business to Caterpillar, which is more concentrated in construction equipment. Mining equipment should be more in demand in the years ahead, although, depending on the sustainability of commodity prices like oil, gold, iron ore and silver, that could be strong as well.
Either way, Caterpillar will have a strong position because of the cyclical nature of both commodity sectors, allowing them to have solid performance when one or the other is down.
Caterpillar was trading up at $82.58, gaining $1.54, or 1.90 percent 2:47 PM EST. Bucyrus exploded by $20.19 a share, soaring to $89.85, gaining $20.23, or 29.06 percent as of 2:47 PM EST.
Caterpillar will acquire Bucyrus by taking over its debt, balance sheet cash, and close to $2 billion in equity.
The deal is about a 32 percent premium over the share price of Bucyrus.
Bucyrus adds its large mining equipment business to Caterpillar, which is more concentrated in construction equipment. Mining equipment should be more in demand in the years ahead, although, depending on the sustainability of commodity prices like oil, gold, iron ore and silver, that could be strong as well.
Either way, Caterpillar will have a strong position because of the cyclical nature of both commodity sectors, allowing them to have solid performance when one or the other is down.
Caterpillar was trading up at $82.58, gaining $1.54, or 1.90 percent 2:47 PM EST. Bucyrus exploded by $20.19 a share, soaring to $89.85, gaining $20.23, or 29.06 percent as of 2:47 PM EST.
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