Wells Fargo Upgrades Georgia Gulf Corp. (GGC) to Outperform; From Takeover Speculation To Fundamentals
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Price: $54.58 --0%
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
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Wells Fargo upgraded Georgia Gulf Corp. (NYSE: GGC) from Market Perform to Outperformm, price target range $35-38.
Wells analyst says, "Our Q1 2012E goes from $0.50 to $0.70 (consensus $0.46) reflecting better early construction demand as well as a FIFO benefit, with 2012E and 2013E EPS going from $2.25 and $2.75 to $2.50 and $3.00, respectively. We’re changing the basis for our $35-38 valuation range from WLK acquisition activity to instead reflect a reasonable ~5.5x on our new 2013E EBITDA. GGC has fallen 12% (vs. the S&P 500 flat) since Westlake Chemical's (NYSE: WLK) earnings call, when it suggested it might walk away (2/21), therefore now providing an opportunity for fundamental investors to gain leverage to cheap natural gas, a potential housing recovery, and an accretive chloralkali expansion."
For an analyst ratings summary and ratings history on Georgia Gulf Corp. click here. For more ratings news on Georgia Gulf Corp. click here.
Shares of Georgia Gulf Corp. closed at $30.91 yesterday.
Wells analyst says, "Our Q1 2012E goes from $0.50 to $0.70 (consensus $0.46) reflecting better early construction demand as well as a FIFO benefit, with 2012E and 2013E EPS going from $2.25 and $2.75 to $2.50 and $3.00, respectively. We’re changing the basis for our $35-38 valuation range from WLK acquisition activity to instead reflect a reasonable ~5.5x on our new 2013E EBITDA. GGC has fallen 12% (vs. the S&P 500 flat) since Westlake Chemical's (NYSE: WLK) earnings call, when it suggested it might walk away (2/21), therefore now providing an opportunity for fundamental investors to gain leverage to cheap natural gas, a potential housing recovery, and an accretive chloralkali expansion."
For an analyst ratings summary and ratings history on Georgia Gulf Corp. click here. For more ratings news on Georgia Gulf Corp. click here.
Shares of Georgia Gulf Corp. closed at $30.91 yesterday.
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