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Analysts’ Views Are Mixed following PPG’s 4Q17 Results

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Analysts’ consensus on PPG post-4Q17

Following PPG Industries’ (PPG) 4Q17 earnings, analysts’ consensus has changed compared to their consensus prior to its 4Q17 earnings.

On January 19, 2018, 50% of analysts recommended “buys” on the stock, while 50% recommended “holds.” Prior to the company’s earnings release, analysts’ consensus reflected 58% “buy” recommendations and 42% “hold” recommendations.

 

Following PPG’s 4Q17 earnings, analysts’ consensus target price for the stock rose to $125.74, implying a return potential of 6.2% over its closing price as of December 19, 2018. Prior to PPG’s 4Q17 earnings, analysts’ consensus target price for the stock was $123.35. PPG’s strong revenue growth and its focus on improving revenue by way of acquisitions and organic growth going forward may have caused analysts to raise their target prices.

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Analysts’ view on PPG Industries post-4Q17

  • JPMorgan Chase (JPM) has downgraded its rating on PPG to a “neutral” from an “overweight.” JPM hasn’t provided a target price for the stock.
  • Deutsche Bank (DB) has rated PPG Industries as a “hold” and raised its target price for the stock to $126 from $120. This implies a return potential of 6.4% compared to the stock’s closing price on January 19, 2018.

Investors can indirectly hold PPG Industries by investing in the iShares Global Materials ETF (MXI), which invests 1.3% of its portfolio in PPG Industries. The fund’s other holdings include DowDuPont (DWDP), Monsanto (MON), and Praxair (PX) with weights of 8.0%, 2.3%, and 2.1%, respectively, as of January 19, 2018.

 

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