Deutsche Bank Raises Price Target On PPG Industries

Deutsche Bank raised its price target on PPG Industries, Inc. (NYSE: PPG) Friday from $215 to $250 and reiterated its Buy rating.

Analyst David Begleiter noted that “PPG had a solid Q4 release as EPS beat by $0.12, or 6 percent, on solid volume growth (+3.5 percent) led by Auto OEM (+6 percent), Aerospace (+8 percent) and Marine (+8 percent) and management provided positive but conservative outlook commentary.”

Begletier continued to feel that PPG is a Buy with its “highly accretive $2.3B Comex acquisition closed and on track to deliver $0.65-$0.75, or 7 percent, of accretion in year 1, share buybacks and accretive M&A continuing and valuation an attractive 18.1x ‘16E EPS.”

The price target “was based on PPG trading at 20x ‘16E EPS in 12 months time, roughly in-line with its current multiple and roughly in-line with coatings peers.”

PPG Industries recently traded at $227.09, up 0.43 percent.