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

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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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