Goldman Sachs Initiating Coverage On Georgia Gulf Corp.

Goldman Sachs is initiating coverage on shares of Georgia Gulf Corp. GGC with a Neutral rating and a $30 price target. In a note to clients, Goldman writes, "We initiate coverage on GGC, a small-cap chemical and building products company, with a Neutral rating and $30, 12-month price target. We view GGC, with its combination of PVC and building products assets, as the most effective way in the Chemicals space to express a view of North American housing. In that context it may have a place in the portfolios of some long-term investors, but we see more risk than reward in the near term, and believe that investors should await a better earnings set up and more concrete signs of improvement in the housing market." Shares of GGC lost 20 cents yesterday to close at $23.74, a loss of 0.8%.