UPDATE: Citigroup Reiterates Buy Rating, Raises PT on PPG Industries

In a report published Wednesday, Citigroup reiterated its Buy rating on PPG Industries

, and raised its price target from $130.00 to $145.00. Citigroup noted, “We have analyzed four EPS scenarios around PPG's divestiture of the Commodity Chemicals business to Georgia Gulf through a Reverse Morris Trust transaction. Our analysis suggests a dilution range of approximately $1.70 to $0.75/share, with: 1) the most dilution ~$(1.70)/shr from a spin-off with no buyback; 2) ~$(1.35)/shr from a spin-off with a buyback funded by the $900mm cash proceeds; 3) ~$(1.15)/shr from a split-off with no buyback; and 4) the least dilution of ~$(0.75)/shr in a split-off with a buyback. A detailed flow chart with all 4 scenarios can be found in Figure 1 on page 3. In addition, PPG has ~$2B cash on the balance sheet as of 3Q12 and we have not factored in any additional buyback from that in our analysis.” PPG Industries closed on Tuesday at $125.04.