The firm said it has started coverage once again on PPG with a "Hold" rating.
A KeyBanc analyst commented, "The second largest global paints and coatings player behind Akzo-Nobel, PPG's geographic and business diversification places it in an enviable position in the global paints and coatings industry. Particularly, we sense that the positive momentum in the Company's aerospace, automotive and optical coatings businesses, coupled with its commodity chemical business, should benefit earnings through at least 2012 given ramping aircraft build rates, favorable pricing and encouraging growth prospects in the developing economies. A strong balance sheet and cash flow should support further acquisition activity and share buybacks going forward."
PPG Industries shares, which have fallen about 14% year-to-date, were unchanged in premarket trading Friday.
The Bottom Line
Shares of PPG Industries ( PPG ) have a 3.15% dividend yield, based on last night's closing stock price of $72.35. The stock has technical support in the $65-$68 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.
PPG Industries, Inc. ( PPG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
Read more: http://community.nasdaq.com/News/2011-09/keybanc-restarts-coverage-on-ppg-industries-as-a-hold-ppg.aspx?storyid=96552#ixzz1ZhZYEc7O