Jefferies Reiterates Buy on PPG Industries (PPG) - PT to $113
Jefferies maintained a Buy rating on PPG Industries (NYSE: PPG), and cut the price target to $113.00 (from $129.00), following the company's 3Q earnings report. PPG reported 3Q EPS in-line with the pre-announced range of $1.54-$1.57. At the segment level, Industrial was $0.02 better than expected, and lower corporate costs offset a $0.06 miss in Performance Coatings and headwinds below the operating line.
Analyst Laurence Alexander commented, "Q3 EPS of $1.56 was in line with our estimate and the pre-announced range of $1.54-$1.57. PPG's combination of cash flow (6.6% average FCF yield before dividends in 2017E-2019E), balance sheet flexibility and cyclical leverage (esp. in Europe) should support a return to a market multiple, at least, in mid-2017. While catalysts are sparse near term, the risk/reward looks appealing after the recent sell-off, especially compared to the broader sector."
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Shares of PPG Industries closed at $92.38 yesterday.