CS First Boston upgrades Georgia Gulf (GGC) to outperform from neutral.
Analyst William Young raised his $6.75 annually peak GGC earnings-per-share estimate to $7.50, and his $51 12-month target to $64. He says the outlook for the commodity cycle--especially in chloralkali, PVC, and phenol/acetone chains--continues to look very healthy.
Young notes that capacity growth is minimal over the next two to three years, and it's likely to be less than originally expected. A delay in the planned start-up of some PVC-capacity expansions in China is one key factor. He says there no signs of any slowdown in demand for chemical products in North America or China.