UPDATE: J.P. Morgan Initiates Coverage on PPG

According to a research report published earlier today, J.P. Morgan has initiated PPG Industries

with an Overweight rating and $120 PT. In the report, J.P. Morgan commented, "We believe that PPG is undervalued versus coatings industry peers. And should we find ourselves mistaken, we believe we are unlikely to be very mistaken as downside risk is limited. We believe the risk/reward is attractive because PPG largely is made up of growing global coatings and optical businesses with above-average returns on capital, high market shares in consolidating industry sub-sectors, a solid balance sheet, and a healthy and sustainable level of free cash flow generation. PPG is much less expensive than its peers SHW and VAL, trading at materially lower EBITDA and EPS multiples, despite having a higher cash flow yield than both." PPG closed Friday at $101.29.