Bucyrus shares peak as analyst starts 'Overweight' coverage

NEW YORK—Shares of Bucyrus International Inc. hit a fresh 52-week high on Monday after a Lehman Brothers analyst started coverage of the mining equipment maker at "Overweight," saying it is poised to take advantage of growing commodities demand.

The stock gained $4.93, or 3.8 percent, to $135.04. It reached a 52-week high of $135.73 earlier in the session, eclipsing a previous peak of $131.89 set a week ago.

Andy Kaplowitz said in a client note Monday that improvements to the company's electrical shovel capacity and its 2007 acquisition of underground miner DBT GmbH makes it well positioned to take advantage of recent increases in commodity prices.

Coal will be of particular importance to Bucyrus, Kaplowitz predicted, as many international coal exporters have reduced exports or faced challenges from capacity constraints, driving up prices. Coal mining equipment accounted for about 73 percent of the company's 2007 sales, he said.

"Recent changes in the international coal market seem like the key toward sustained Bucyrus performance," Kaplowitz said.

He also predicted copper and iron ore demand will remain strong in the near future because of demand in emerging markets.

Kaplowitz assigned Bucyrus a $140 share price target, implying he expects the stock to gain nearly 8 percent.