What’s the Word among Analysts on PPG Industries?



Analyst recommendations

PPG Industries (PPG) is expected to release its 2Q16 earnings report on July 21, 2016. In this series, we’ll try to decipher what the market is expecting in order to help investors consider their positions. But first, let’s see what analysts are recommending.

As of June 21, 2016, PPG’s consensus 12-month target price was $125, which represents a potential return of ~15% from its closing price of $108.06 on June 21, 2016. There are 19 active brokerage firms that have revisited their reviews after the announcement of PPG Industries’ (PPG) 1Q16 earnings report. Among the 19 brokers, 79% of them are recommending a “buy” for the stock while 21% of the brokerage firms are recommending a “hold.” No brokerage firm has recommended a “sell.”

The target prices provided by these brokers range from $120–$131. Susquehanna Financial has recommended the highest target price of $131 while three brokerage firms have recommended the target price at the lower end of the $120 range.

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Peer comparisons

PPG Industries announced its 1Q16 results on April 21, 2016. On that day, the stock closed at $109.85, and on June 21, the stock closed at $108.06, which is 1.6% lower than on the date of its 1Q16 earnings announcement.

Sherwin-Williams (SHW) also announced its 1Q16 earnings on April 21, 2016. On that day, its stock price closed at $296.52, as compared to June 21, when the stock closed at $287.50, which is 3% lower.

Valspar (VAL) announced its 2Q16 earnings on May 24, 2016. On that day, its stock price closed at $106.67, which is ~1.6% lower than the stock closing price of $108.33 on June 21.

RPM International (RPM) announced its 3Q16 on April 6, 2016. On that day, its stock price closed at $48.45, which is 5.6% lower than the closing price of $51.16 on June 21.

Valspar and RPM have thus managed to outperform PPG Industries after the 1Q16 results. Notably, the Materials Select Sector SPDR Fund (XLB) has invested ~5.4% of its total portfolio in PPG Industries.

Continue to the next part for more on analyst expectations for PPG’s revenue.


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