Analyst Ghansham Panjabi of Robert W. Baird maintained a Buy rating on PPG Industries (PPG – Research Report), with a price target of $150.00.
Ghansham Panjabi has given his Buy rating to PPG Industries due to a set of positive financial indicators and the company’s robust strategic positioning. Despite a forecast for first-quarter earnings per share (EPS) that falls short of street expectations, Panjabi notes the solid performance in the fourth quarter, with EPS modestly exceeding consensus. This, along with year-over-year margin improvements and strong sales growth in certain segments such as Aerospace and Automotive OEM, underpins the favorable outlook for the company. PPG’s broad diversity in both product offerings and geographic presence is highlighted as a significant strength that is expected to support its performance in a challenging macroeconomic environment.
Furthermore, Panjabi emphasizes PPG Industries’ healthy balance sheet, marked by strong cash flow conversion and a debt-to-EBITDA ratio of less than 1.5 times, indicating low leverage and financial stability. The overall 2024 EPS outlook remains intact, suggesting confidence in the company’s future despite the near-term soft guidance for the first quarter. The analyst expects that share buybacks and the timing of certain holidays may positively influence the company’s performance throughout the year. Panjabi’s analysis suggests that PPG’s diverse portfolio and strategic market positioning make it a strong candidate for a Buy recommendation.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $167.00 price target.
PPG’s price has also changed slightly for the past six months – from $151.370 to $144.950, which is a -4.24% drop .
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PPG Industries (PPG) Company Description:
Pennsylvania-based PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials. It operates through two segments: Performance Coatings and Industrial Coatings.
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