Ahead of the Bell: PPG Industries
NEW YORK—PPG Industries should benefit next year from growth in its automotive aftermarket and aerospace coatings businesses, according to a Tuesday report from KeyBanc Capital Markets.
Analyst Ivan Marcuse upgraded the Pittsburgh coatings manufacturer to "Buy" from "Hold." He also raised its 2012 earnings estimates to $7.15 from $7.10 per share while cutting expectations for 2011 to $6.80 from $6.95 per share due to "short-term volatility" due to floods in Thailand and Europe's financial crisis.
Marcuse also set a $100 price target for the company.
Marcuse said PPG's automotive paints unit has positioned itself to outperform its peers in the U.S. and Europe while also benefiting from demand in emerging markets. He said that the company's aerospace coatings business will benefit from sales the new Boeing 787.
Shares of PPG Industries Inc. rose $1.26 to $83.81 in premarket trading.