Steve Byrne, an analyst from Bank of America Securities, reiterated the Buy rating on PPG Industries (PPG – Research Report). The associated price target is $164.00.
Steve Byrne’s rating is based on a nuanced view of PPG Industries’ current position and future potential. Despite a sluggish first quarter, Byrne sees an acceleration in earnings on the horizon. PPG’s recent performance was hampered by difficult comparisons from the previous year and macroeconomic challenges, particularly in Europe. However, Byrne points to strengths in aerospace, protective and marine, and the Mexican architectural market that counterbalance weaker areas. Margin expansion driven by productivity measures and reduced raw material costs is also a positive sign. Byrne acknowledges the market’s tepid response to PPG’s weak sales but remains optimistic about the company’s core business health.
Looking ahead, Byrne believes PPG Industries is poised for growth, citing the company’s ability to gain market share through cross-selling and leveraging its technology across its diverse coatings businesses. While acknowledging some ongoing headwinds, he forecasts a robust 10% earnings growth for 2024. This expected growth, coupled with a substantial share repurchase authorization, contributes to Byrne’s positive outlook. The price objective is set at $164, grounded in a disciplined valuation approach that includes both discounted cash flow analysis and a forward price-to-earnings multiple. Despite a slight adjustment to the price objective, Byrne’s conviction in PPG’s ability to outperform is evident, justifying the Buy rating.
In another report released today, KeyBanc also assigned a Buy rating to the stock with a $162.00 price target.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PPG in relation to earlier this year.
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PPG Industries (PPG) Company Description:
Pennsylvania-based PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials. It operates through two segments: Performance Coatings and Industrial Coatings.
