PPG Industries (NYSE:PPG) Price Target Raised to $130.00

Key Points

• Citigroup raised its PPG Industries price target to $130 from $118 while maintaining a neutral rating, implying 8.22% upside from the prior close.
• Analyst sentiment is broadly positive but mixed: PPG has a consensus “Moderate Buy” rating, with an average price target of $127.53; nine analysts rate it a Buy and nine a Hold.
• PPG’s latest quarterly results beat expectations, with EPS of $2.25 versus $2.12 expected and revenue of $4.35 billion, up 6.6% year over year. Management also raised its full-year adjusted EPS guidance midpoint to a $7.90–$8.10 range.

PPG Industries (NYSE:PPG - Get Free Report) had its target price hoisted by investment analysts at Citigroup from $118.00 to $130.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "neutral" rating on the specialty chemicals company's stock. Citigroup's price objective would indicate a potential upside of 8.22% from the stock's previous close.

A number of other equities research analysts also recently weighed in on the company. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $137.00 price target on shares of PPG Industries in a research note on Thursday. Bank of America raised PPG Industries from a "neutral" rating to a "buy" rating and boosted their price target for the company from $127.00 to $134.00 in a research note on Friday, July 17th. Wall Street Zen downgraded PPG Industries from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Wells Fargo & Company raised their price objective on shares of PPG Industries from $130.00 to $135.00 and gave the company an "overweight" rating in a research report on Thursday. Finally, BMO Capital Markets reduced their target price on shares of PPG Industries from $140.00 to $138.00 and set an "outperform" rating for the company in a research note on Monday, July 6th. Nine research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $127.53.

PPG Industries Price Performance

PPG stock traded up $1.69 during trading hours on Thursday, hitting $120.12. 2,157,271 shares of the stock traded hands, compared to its average volume of 1,983,259. The stock has a 50-day simple moving average of $108.51 and a 200 day simple moving average of $112.35. The company has a market cap of $26.70 billion, a P/E ratio of 17.21, a P/E/G ratio of 2.04 and a beta of 1.06. PPG Industries has a one year low of $93.39 and a one year high of $133.43. The company has a current ratio of 1.58, a quick ratio of 1.15 and a debt-to-equity ratio of 0.72.

PPG Industries (NYSE:PPG - Get Free Report) last posted its quarterly earnings results on Tuesday, October 27th. The specialty chemicals company reported $2.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.12 by $0.13. The company had revenue of $4.35 billion for the quarter, compared to analysts' expectations of $4.28 billion. PPG Industries had a return on equity of 21.07% and a net margin of 9.57%. The firm's revenue was up 6.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.13 earnings per share. Equities analysts forecast that PPG Industries will post 7.87 earnings per share for the current year.

Hedge Funds Weigh In On PPG Industries

Several large investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in PPG Industries during the second quarter worth about $2,856,392,000. Pzena Investment Management LLC acquired a new stake in PPG Industries during the second quarter valued at approximately $946,964,000. Bank of New York Mellon Corp bought a new stake in shares of PPG Industries in the 2nd quarter valued at approximately $318,870,000. Bank of America Corp DE bought a new stake in shares of PPG Industries in the 2nd quarter valued at approximately $278,965,000. Finally, First Trust Advisors LP raised its holdings in shares of PPG Industries by 321.4% in the 1st quarter. First Trust Advisors LP now owns 2,287,261 shares of the specialty chemicals company's stock worth $244,462,000 after buying an additional 1,744,528 shares in the last quarter. Institutional investors and hedge funds own 81.86% of the company's stock.

Key Headlines Impacting PPG Industries

Here are the key news stories impacting PPG Industries this week:

• Positive Sentiment: Q3 results exceeded expectations: PPG reported adjusted earnings of $2.25 per share versus the $2.12 consensus estimate, while revenue rose 6.6% year over year to $4.35 billion, above the $4.28 billion forecast. Growth was supported by aerospace demand, higher pricing and improved volumes. PPG Q3 Earnings Beat Estimates
• Positive Sentiment: Improved outlook: Management raised the midpoint of its full-year adjusted EPS guidance to a range of $7.90 to $8.10 and expects fourth-quarter EBITDA margin expansion of up to 100 basis points. The upgraded outlook suggests continued benefits from pricing, volume growth and operating improvements. PPG Full-Year Guidance
• Positive Sentiment: Analysts raised targets: Wells Fargo increased its target to $135 from $130, Barclays to $137 from $136, and KeyBanc to $131. Bernstein also lifted its target to $137 from $136. The revisions indicate greater confidence in PPG’s earnings trajectory and leave meaningful implied upside from recent trading levels. Analyst Price-Target Changes
• Neutral Sentiment: Mixed analyst stance: UBS raised its target to $123 from $116 but maintained a neutral rating, suggesting the firm sees modest upside after the recent advance rather than a strong near-term catalyst. UBS PPG Recommendation

PPG Industries Company Profile

PPG Industries, Inc is a global manufacturer of paints, coatings and specialty materials. The company develops products designed to protect, decorate and improve the performance of surfaces and components used in transportation, construction, manufacturing and consumer products.

Its product portfolio includes automotive and commercial vehicle coatings, aerospace coatings, industrial and protective coatings, architectural paints, packaging coatings, and coatings used in marine and other specialty applications.

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