Analysts’ consensus on PPG Industries
Since PPG Industries’ (PPG) third-quarter earnings, the number of analysts tracking the company has increased from 22 analysts to 24 analysts. Among the analysts, 42% recommended a “buy,” while 58% recommended a “hold.” None of the analysts recommended a “sell.” Investors follow analysts’ views and recommendations to track the stock prices.
Analysts’ consensus on PPG Industries indicates a target price of $113.30, which implies a return potential of 12.2 over the closing price of $101.00 as of January 15. In the past three months, PPG Industries’ consensus target price has more or less remained consistent.
PPG Industries is facing challenges due to higher raw material prices, the strong dollar, and declining volumes in the architectural segment. However, PPG Industries has been acquiring a few companies. The companies will likely help PPG Industries continue its future revenue growth and its organic growth. As a result, most of the analysts have recommended the stock as a “hold.”
Individual brokerage firms’ recommendations and targets
- RBC (RY) rated PPG Industries as “outperform” and raised its target price from $105 to $121, which implies a return potential of 19.8% over the closing price of $101 on January 15.
- Raymond James (RJF) reduced the target price to $138 from $140, which implies a return potential of 36.6% over the closing price on January 15.
- J.P. Morgan (JPM) recommended a target price of $105, which implies a return potential of ~4.0% over the closing price of $101 on January 15.
Investors could hold PPG Industries indirectly by investing in the Guggenheim S&P 500 Equal Weight Materials ETF (RTM). RTM has invested ~4.0% of its portfolio in PPG Industries as of January 15.