Zacks Investment Research downgraded shares of PPG Industries Inc. (PPG) from OUTPERFORM to NEUTRAL on August 21, 2012, with a target price of $115.00.
We are downgrading our recommendation on PPG Industries to Neutral factoring in the challenges the company is expected to face in the second half of 2012. Second quarter adjusted earnings matched the Zacks Consensus Estimate while revenues missed. Unfavorable currency exchange translation weighed on the top line in the quarter. Strong internal growth in domestic market was somewhat offset by weakness in Europe. PPG Industries has a diversified base of products and markets, and looks to grow its businesses strategically along with controlling costs. However, the European market is expected to remain under pressure and higher input costs will continue to dent the company's results in the second half.
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