PPG Industries Upgraded at Wells Fargo

PPG Industries (NYSE:PPG) shares fell nearly 2% today after BofA Securities lowered its rating on the stock from Buy to Neutral and cut the price target to $126 from $143, citing a growing mix of macro and sector-specific headwinds.

While overall coatings raw material inflation is expected to remain relatively contained through 2025, the firm projects a more noticeable price uptick by 2026—driven in part by escalating costs for tin plate and epoxy resin. These pressures are being amplified by anticipated mid-single-digit inflation in raw materials, compounded by tariff-related impacts.

PPG’s recent sale of its U.S. and Canadian architectural coatings business reduced its exposure to North American housing, but its Mexico-based Comex segment could face indirect pressure if tariffs slow the Mexican economy. Meanwhile, PPG’s automotive OEM and refinish segments may be vulnerable in a potential downturn, given their sensitivity to consumer demand.

With inflation risks climbing and economic uncertainty rising, BofA believes the near-term upside is now limited, prompting its shift to a more cautious stance on the stock.

PPG Industries (NYSE:PPG) shares fell nearly 2% today after BofA Securities lowered its rating on the stock from Buy to Neutral and cut the price target to $126 from $143, citing a growing mix of macro and sector-specific headwinds.

While overall coatings raw material inflation is expected to remain relatively contained through 2025, the firm projects a more noticeable price uptick by 2026—driven in part by escalating costs for tin plate and epoxy resin. These pressures are being amplified by anticipated mid-single-digit inflation in raw materials, compounded by tariff-related impacts.

PPG’s recent sale of its U.S. and Canadian architectural coatings business reduced its exposure to North American housing, but its Mexico-based Comex segment could face indirect pressure if tariffs slow the Mexican economy. Meanwhile, PPG’s automotive OEM and refinish segments may be vulnerable in a potential downturn, given their sensitivity to consumer demand.

With inflation risks climbing and economic uncertainty rising, BofA believes the near-term upside is now limited, prompting its shift to a more cautious stance on the stock.

• Wells Fargo maintains an "Overweight" rating on NYSE:PPG, with a current stock price of approximately $112.55.
• PPG reported fourth-quarter earnings of $1.61 per share, missing the consensus estimate of $1.65 per share, leading to a 2.9% drop in share price.
• The company's FY25 adjusted EPS guidance of $7.75-$8.05 is below market estimates, causing analysts to adjust their price targets.

PPG Industries, Inc. (NYSE:PPG) is a leading global supplier of paints, coatings, and specialty materials, competing with giants like Sherwin-Williams and AkzoNobel. Despite receiving an "Overweight" rating from Wells Fargo, PPG's recent financial performance has shown mixed results. The company's fourth-quarter earnings fell short of analyst expectations, leading to a slight drop in its share price.

PPG's Chairman and CEO, Tim Knavish, highlighted the company's resilience and growth prospects, noting a 6% increase in adjusted EPS and improved segment margins. The company has also demonstrated its commitment to shareholder returns, with $1.4 billion in operating cash flow returned to shareholders, including $750 million in stock repurchases. However, PPG's guidance for FY25 adjusted EPS is below market expectations, prompting analysts to revise their price targets. Despite these challenges, the stock remains active, with a trading volume of 1,686,932 shares, reflecting ongoing investor interest.

• Wells Fargo maintains an "Overweight" rating on NYSE:PPG, with a current stock price of approximately $112.55.
• PPG reported fourth-quarter earnings of $1.61 per share, missing the consensus estimate of $1.65 per share, leading to a 2.9% drop in share price.
• The company's FY25 adjusted EPS guidance of $7.75-$8.05 is below market estimates, causing analysts to adjust their price targets.

PPG Industries, Inc. (NYSE:PPG) is a leading global supplier of paints, coatings, and specialty materials, competing with giants like Sherwin-Williams and AkzoNobel. Despite receiving an "Overweight" rating from Wells Fargo, PPG's recent financial performance has shown mixed results. The company's fourth-quarter earnings fell short of analyst expectations, leading to a slight drop in its share price.

PPG's Chairman and CEO, Tim Knavish, highlighted the company's resilience and growth prospects, noting a 6% increase in adjusted EPS and improved segment margins. The company has also demonstrated its commitment to shareholder returns, with $1.4 billion in operating cash flow returned to shareholders, including $750 million in stock repurchases. However, PPG's guidance for FY25 adjusted EPS is below market expectations, prompting analysts to revise their price targets. Despite these challenges, the stock remains active, with a trading volume of 1,686,932 shares, reflecting ongoing investor interest.

PPG Industries (NYSE:PPG) announced this morning that it expects Q1/23 adjusted EPS to be in the range of $1.52-$1.58, exceeding previous guidance of $1.10-$1.20. As a result, shares surged nearly 5% yesterday.

Margin recovery accelerated in Q1, driven by higher sales volumes and additional selling price capture, led by aerospace and automotive OEM coatings businesses. The company noted higher year-over-year earnings were seen across most of the portfolio, including Europe, and volumes were better in China due to fewer pandemic disruptions than originally expected.

Analysts at RBC Capital raised their 2023/2024 estimates following the updated guidance and raised their price target to $143 from $133, while maintaining their Sector Perform rating.

PPG Industries (NYSE:PPG) announced this morning that it expects Q1/23 adjusted EPS to be in the range of $1.52-$1.58, exceeding previous guidance of $1.10-$1.20. As a result, shares surged nearly 5% yesterday.

Margin recovery accelerated in Q1, driven by higher sales volumes and additional selling price capture, led by aerospace and automotive OEM coatings businesses. The company noted higher year-over-year earnings were seen across most of the portfolio, including Europe, and volumes were better in China due to fewer pandemic disruptions than originally expected.

Analysts at RBC Capital raised their 2023/2024 estimates following the updated guidance and raised their price target to $143 from $133, while maintaining their Sector Perform rating.