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J.P. Morgan Downgraded PPG Industries, Stock Fell 5.3%

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J.P. Morgan downgraded PPG Industries

On March 22, J.P. Morgan (JPM) downgraded PPG Industries’ (PPG) rating to “underweight” from “neutral.” J.P. Morgan said that PPG Industries could face headwinds in some of its end markets in the first quarter. Weakness in the Chinese and European economy has resulted in weaker business conditions. J.P. Morgan sees weakness in the architectural coatings markets.

As a result of the downgrade, PPG Industries stock fell 5.3% and closed at $106.69 on March 22. Sherwin-Williams (SHW) fell ~3.0%.

Currently, 24 analysts are actively tracking PPG Industries. Among the analysts, 38% recommended a “buy,” 58% recommended to a “hold,” and 4% recommended a “sell.”

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Other recommendations

  • BMO (BMO) has cut PPG Industries’ target price to $112 from the earlier recommendation of $115, which implies a return potential of ~5.0% over the closing price of $106.69 as of March 22.
  • Suntrust Robinson raised PPG Industries’ target price to $110 from its previous guidance of $105, which implies a return potential of 3.1% over the closing price on March 22.
  • Susquehanna has also cut PPG Industries’ target price to $100, which indicates that PPG Industries could fall 6.3% over the closing price on March 22.

Investors could hold PPG Industries indirectly by investing in the Invesco S&P 500 Equal Weight Materials ETF (RTM), which has invested 4.0% of its portfolio in PPG Industries as of March 22.

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