Analyst Andrew F Rosenfeld of Prudential Financial initiates coverage of PPG Industries Inc (PPG) with an "underweight" rating.
The target price is set to $59.
In a research note published this morning, the analyst mentions that the underlying demand momentum is expected to boost the chemical industry scenario in the near future. PPG Industries' coatings and chemicals segments are likely to drive the companys 2003 earnings, the analyst believes. This rise in the companys earnings is, however, likely to be offset by the increasing pension and raw material costs, the analyst adds.