KMTUY - Komatsu Emerging From The Downturn With Upside If Mining Companies Start Spending Again

• Komatsu's recent reported results have been weak, but demand has started to recover across the business, with better recent trends in Indonesian mining and U.S. heavy machinery demand.
• Falling share in China's excavator market and intensifying competition in Indonesia's mining market are significant threats, as is the over-reliance of the mining business on coal.
• A real fleet refresh cycle in global mining could drive these shares toward $40, but that's far from certain and this is a recovery/cycle trade, not a long-term buy-and-hold.

For further details see: