Wall Street’s View on PPG Industries ahead of 2Q17 Earnings



Analysts’ consensus on PPG Industries

As of July 11, 2017, 21 analysts from various brokerage firms are actively tracking PPG Industries (PPG). About 67.0% of them have recommended a “buy” for PPG, and 33.0% have recommended a “hold.” None of them have recommended a “sell.”

The analyst consensus indicates a 12-month target price for PPG of $114.79. That implies a 12-month potential return of 3.4% from the closing price of $111.03 on July 11, 2017.

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What are most analysts saying?

Below are some of the positive developments that are expected to drive PPG’s future growth:

  • better-than-expected 1Q17 earnings
  • capacity expansion in Russia to meet the growing demand
  • the launch of new products
  • collaborations
  • new business wins

As a result, most analysts tend to recommend a “buy” or a “hold” for PPG stock.

Recommendations and target prices by individual brokerage firms

  • SunTrust Robinson Humphrey has recommended a target price of $120 for PPG, implying a potential return of 8.1% over the closing price of $111.03 on July 13, 2017.
  • RBC has given PPG a target price of $109. As of July 11, 2017, the stock was trading 1.9% above the recommended target price.
  • Barclays (BCS) has rated PPG an “equal weight” with a target price of $115, implying a potential return of 3.6% over the closing price of $111.03 on July 11, 2017.

You can indirectly hold PPG by investing in the ProShares Ultra Basic Materials (UYM), which has invested 3.2% of its portfolio in PPG Industries. The fund’s top holdings include Dow Chemical (DOW) and DuPont (DD) with weights of 8.1% and 8.0%, respectively, as of July 11, 2017.

In the next part, we’ll take a look at PPG’s latest valuations.


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