UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on PPG Industries

In a report published Friday, Credit Suisse Group reiterated its Outperform rating on PPG Industries

, and raised its price target from $122.00 to $133.00. Credit Suisse noted, “Core PPG multiple expansion-PPG has long had a discounted multiple to its US coatings peer group (SHW, VAL and RPM) largely owing to its ownership of the commodity chemical segment, which has added volatility and to a lesser degree capital intensity to their portfolio. With this asset gone, we believe PPG's EV/EBITDA multiple should expand at least to 9X 2013 (with the peer group averaging 9.7X). GGC ownership-PPG shareholders will benefit from the structure of this asset sale (using Reverse Morris Trust) not only from the tax free status, the $900 mil in cash and $182 mil of assumed debt and Minority Interest but also by getting 50.5% of the new GGC. With this GGC ownership they have the unlocked value of the synergies of between the two ($115 mil) as well as exposure to a US housing recovery in the legacy GGC assets.” PPG Industries closed on Thursday at $11.96.