UPDATE: J.P Morgan Raises Estimates, PT On Georgia Gulf Following Earnings

J.P Morgan raised its F2011 EPS forecast on Georgia Gulf GGC from $1.30 to $2.50 to reflect higher selling prices and a strong export market in Chlorovinyls. The Aromatics division should also benefit from higher selling prices and delayed benzene and propylene-based costs realization leading to FIFO inventory benefits. Aromatics volume growth could be assisted by healthy exports reflecting production outages and US raw material cost advantages. The acquisition of the Crane “Exterior Portfolio” could add $10- 11Mn to the Building Products EBITDA. JPM's 2011 EBITDA forecast is $282Mn versus $232Mn previously. J.P Morgan lifted its 2012 EPS projection from $1.65 to $2.15. J.P Morgan rates Georgia Gulf Neutral based on valuation and the recent positive stock price performance. The shares have risen 25% since the beginning of the year from $24 to $30 in tandem with other commodity chemical peers, and versus 7% for the market. J.P Morgan lifted its December 2011 price target from $20 to $32. GGC is trading higher at $30.74