Georgia Gulf dips after Citigroup lowers price target
Georgia Gulf Corp. (NYSE: GGC) shares are dipping after Citigroup, Inc. (NYSE: C) lowered its price target to $9 from $12. Citigroup said the weak housing market is hurting Georgia Gulf’s earnings.
Citigroup changed its rating on the chemical company to “hold/speculative” from “hold/high risk.” The investment bank said Georgia Gulf’s material expenses have risen and are expected to continuing rising during December.
In a note to investors, Citigroup said Georgia Gulf is “in a tough spot” and if “the company violates its debt covenants this could further bring down its credit ratings.”
In today’s trading, GGC shares are down 14.06%, or $1.08, at $6.60. Over the last 52 weeks, shares have ranged from $6.16 to $21.90.
