PPG Industries’ coating upgraded
On February 19, 2018, PPG Industries (PPG) announced that its PPG CA7088 fuel tank coating had been upgraded to meet the SAE International’s aerospace specifications. The product is upgraded to Type 3, which specifies a chrome-free coating with less than 420 grams per liter of volatile organic compound (or VOC) content.
This upgrade is designed to prevent corrosion. This coating also resists diethylene glycol monomethyl ether, which prevents icing. As a result, the coating met the Grade 2 classification.
Duane Utter, PPG’s global segment manager for military coatings and defense products, said, “The qualification demonstrates PPG’s industry leadership in developing products that provide desirable environmental, health and safety qualities in combination with performance characteristics.
Utter continued, “The coating is now on the SAE Qualified Products List, which is important to military and airline maintenance operations in selecting products.”
PPG’s stock price update
PPG gained 1.1% and closed at $117.46 for the week ended February 23, 2018. This gain resulted in an increase in its stock price. PPG traded above its 100-day moving average price of $115.86, indicating a trend reversal.
On a year-to-date basis, PPG has gained 0.50%. Among its peers, Sherwin-Williams (SHW), RPM International (RPM), and Axalta (AXTA) have fallen 2.9%, 4.0%, and 1.7%, respectively. Analysts appear to be bullish on the stock and have projected a target price of $126.10, which is 7.3% over its February 23, 2018, closing price.
PPG’s 14-day RSI (relative strength index) of 55 indicates that the stock is neither overbought nor oversold. Investors can get indirect exposure to PPG by investing in the Guggenheim S&P 500 Equal Weight Materials ETF (RTM), which gained 1.5% for the week. RTM invested 3.5% of its portfolio in PPG on February 23, 2018.