After 10% run-up, optimism may be priced into Joy Global’s shares

|About: Joy Global Inc. (JOY)|By:, SA News Editor

Joy Global (JOY) shares surged another 3.9% today to cap a 10%-plus two-day advance after above consensus FQ2 earnings and a BofA/Merrill upgrade, but not everyone is so enamored with the miner's outlook.

Raymond James analysts think recent optimism has been baked into the stock’s current price, which now trades at 15x estimated 2015 earnings, so they advise waiting for a more favorable valuation or a more concrete end market outlook.

Morgan Stanley is concerned about JOY's ability to achieve implied Q4 guidance - it says JOY would need to book more than $1B in orders in Q3 - and sees potential downside to 2015 consensus.