Analyst John Roberts CFA of Mizuho Securities maintained a Buy rating on PPG Industries (PPG – Research Report), with a price target of $175.00.
John Roberts CFA has given his Buy rating due to a combination of factors that indicate potential for near-term growth for PPG Industries. Based on the insights gained from a recent CFO-hosted event, Roberts is optimistic about the company’s growth trajectory in various sectors, despite some wanting in a more defined long-term growth algorithm. He acknowledges expected volume increases in 2024, particularly in areas such as Aerospace, Mexico’s Comex, and the China auto OEM market, which bolster the case for the stock’s growth prospects.
Additionally, Roberts’ valuation is influenced by PPG’s raw material inventory management and modest price declines on a LIFO basis, which shows prudent control over costs. His price target of $175 is derived from an 18.5x multiple of the anticipated next twelve months plus one quarter’s earnings per share, pointing to a solid earnings outlook for PPG. Despite acknowledging risks such as macroeconomic headwinds, raw material price volatility, and integration challenges from recent acquisitions, Roberts maintains a positive outlook on the stock’s potential performance.
In another report released on January 29, Barclays also assigned a Buy rating to the stock with a $163.00 price target.
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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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