Deutsche Bank Upgrades PPG Industries (PPG) to Buy; Divestiture Should Help Multiple Expansion
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Price: $156.83 -0.02%
Rating Summary:
12 Buy, 6 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
12 Buy, 6 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade PPG Now!
Deutsche Bank upgraded PPG Industries (NYSE: PPG) from Hold to Buy with a price target of $132.00.
Deutsche analyst said, "With the tax-efficient divestiture of its commodity chlor-alkali business (19% of '12E EBIT), PPG will become a pure-play coatings and optical company with peer group valuations of 16.3x and 26.5x respectively. Given this, our SOTP target multiple of 17.5x (vs 14x today) looks achievable as PPG has established itself as the world's premier coatings company. With dilution from the divestiture mitigated by falling raw materials, cost savings, a lower tax rate and share buybacks, coupled with leverage to autos and housing, we believe there is upside to our ‘13E EPS of $7.00."
For an analyst ratings summary and ratings history on PPG Industries click here. For more ratings news on PPG Industries click here.
Shares of PPG Industries closed at $111.96 yesterday, with a 52 week range of $66.43-$112.18.
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Deutsche analyst said, "With the tax-efficient divestiture of its commodity chlor-alkali business (19% of '12E EBIT), PPG will become a pure-play coatings and optical company with peer group valuations of 16.3x and 26.5x respectively. Given this, our SOTP target multiple of 17.5x (vs 14x today) looks achievable as PPG has established itself as the world's premier coatings company. With dilution from the divestiture mitigated by falling raw materials, cost savings, a lower tax rate and share buybacks, coupled with leverage to autos and housing, we believe there is upside to our ‘13E EPS of $7.00."
For an analyst ratings summary and ratings history on PPG Industries click here. For more ratings news on PPG Industries click here.
Shares of PPG Industries closed at $111.96 yesterday, with a 52 week range of $66.43-$112.18.
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