Deutsche Bank Downgrades PPG Industries (PPG) to Hold
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Deutsche Bank downgraded PPG Industries (NYSE: PPG) from Buy to Hold with a price target of $100.00 (from $122.00). Analyst David Begleiter thinks challenges will persist into 2017.
"Following its preannounced Q3 earnings shortfall on Friday, we are downgrading PPG from Buy to Hold. While we believe the shares are slightly oversold and the company is of high quality with a strong balance sheet, we also believe that PPG’s modest EPS growth in’16E (+4%), will continue into ‘17 (+6%). This sluggish growth reflects PPG’s inability to grow organically (Q3 is the 7th straight qtr of <2% volume growth) and inability to grow inorganically (PPG was recently outbid by BASF for Albemarle’s coatings business) coupled with tailwinds from raw materials becoming headwinds in ’17 and cost savings, notwithstanding new ones announced Friday, largely done," said Begleiter.
Shares of PPG Industries closed at $93.85 yesterday.
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