PPG Industries, Inc. (PPG) is a globally recognized specialty chemicals giant possessing a market cap of $28.70 billion. PPG specializes in manufacturing and distributing paints, coatings, and specialty materials across various sectors, including automotive, aerospace, and industrial applications. Headquartered in Pittsburgh, Pennsylvania, PPG is renowned for its comprehensive range of coatings and advanced materials used in diverse industries and applications.
The stock has underperformed the broader market considerably over the last year. PPG has declined 11.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied more than 28.3%. In 2024 alone, PPG stock is down 17.6%, while SPX is up 17.6% on a YTD basis.
Narrowing the focus, PPG has also underperformed the Fidelity MSCI Materials Index ETF (FMAT). The exchange-traded fund has gained about 12.3% over the past year and 4.9% on a YTD basis.
Shares of PPG plunged 1.5% on Jul. 18, the day its Q2 results were reported. Adjusted EPS of $2.50 per share beat the Wall Street expectations of $2.48. However, revenue of $4.79 billion missed the consensus estimate of $4.91 billion. PPG Industries expects its EPS for the current year to range from $8.15 to $8.30.
For the current fiscal year, ending in December, analysts expect PPG to report EPS growth of 7.6% to $8.25 on a diluted basis. The company beat or met the consensus estimate in the last four quarterly earnings reports.
Among the 22 analysts covering PPG stock, the consensus rating is a "Moderate Buy." That's based on 12 "Strong Buy" ratings and 10 "Holds."
On Aug. 16, Deutsche Bank analyst David Begleiter maintained a “Buy” rating on PPG Industries and set a price target of $150.00, which indicates an upside potential of 21.7% from the current levels.
The mean price target of $152.16 represents a premium of 23.5% to PPG's current price. The Street-high price target of $165 suggests an upside potential of 34%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
