PPG Industries’ New Windshield
On October 6, 2017, PPG Industries announced that its new glass-faced acrylic windshields had received approval from the EASA (European Aviation Safety Agency). As a result, PPG’s new windshields can be used in the Hawker 800 series business jets. The glass can also be used in other Hawker aircrafts, including the 750, 800, 800 XP, and 800 (U-125A).
PPG’s EASA supplemental type certificate has allowed PPG to sell its windshields directly to aircraft operators and owners in Europe. The opportunity enhances PPG’s strength in Europe.
PPG’s stock performance
PPG stock has now spiraled up to $113.28, gaining 4.6% in the week ended October 6, 2017. Despite these sharp gains, PPG underperformed peers Sherwin-Williams (SHW) and Axalta (AXTA), which returned 7.1% and 5.6%, respectively, during the same period. But PPG outperformed RPM International (RPM) and the Materials Select Sector SPDR Fund (XLB), which returned 0.60% and 1.9%, respectively, during the same period.
Notably, XLB had 4.6% of its portfolio in PPG Industries on October 6, 2017.
PPG stock was most recently trading 5.2% above its 100-day moving average price of $107.66, indicating a prevailing upward trend in the stock. However, the stock’s RSI (relative strength index) level of 75 indicates that the stock has been overbought, and so there could be some selling pressure going forward.
On a YTD (year-to-date) basis, PPG stock has returned 18.9%. Analysts foresee more upward potential in the stock and have recommended a target price of $115.52 over the next 12 months, implying a return of 2.0% over its closing price as of October 6, 2017.