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PPG Industries: Analysts’ Views before Its Q4 Earnings

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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.

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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.

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