UPDATE: Deutsche Bank Reiterates on PPG Industries Following Meetings with Executive VP
In a report published Friday, Deutsche Bank analyst David Begleiter reiterated a Buy rating on PPG Industries (NYSE: PPG), and raised the price target from $195.00 to $210.00.
In the report, Deutsche Bank noted, “While meetings with PPG EVP Viktor Sekmakas highlighted the company's preference for M&A vs buybacks with the ~$4B of cash it will have post the sale of Transitions 1H14, the meetings also highlighted mitigants to the risks associated with M&A including a strong track record of success and a record of financial conservatism evidenced most recently by PPG being the losing bidder on both Comex (Sherwin) and Inver (Valspar). With PPG positioned to deliver 15% CAGR EPS growth in '14-'15 (driven by Akzo synergies, operating leverage from improving European demand, the deployment of the $4B in cash) and valuation a fair 19.5x ‘14E EPS (vs 19.9x for Sherwin), reiterate Buy.”
PPG Industries closed on Thursday at $181.78.
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