Wells Fargo Upgrades PPG Industries (PPG) to Overweight

Wells Fargo analyst Michael Sison upgraded PPG Industries (NYSE: PPG) from Equal Weight to Overweight with a price target of $163.00 (from $140.00).

The analyst comments "We upgrade PPG to OW from EW on a volume inflection point in 2Q24. We see an exit of the US architectural coatings market as the right strategic move, where PPG can get good value for the business as earnings power improves with the housing market. We believe PPG is better positioned to meet its 8-12% EPS growth goals with a more focused coatings portfolio, generating solid EPS growth in 2024E (~+10% Y/Y) with accelerated stock buybacks this year from FCF and divestiture proceeds. Inflection to Volume Growth in 2Q24: While we expect volumes to remain negative in 1Q24 (down 1% Y/Y), we see volumes shifting to positive 0.4% growth in 2Q24, 2% in 3Q24 and 3% in 4Q24 resulting in ~1% growth in 2024 and 2.6% in 2025. Volume growth should be driven by steady improvement in China, India, and Mexico, stabilization in Europe, and strong growth in Aerospace and Refinish, with further upside for Performance Coatings if the US architectural business is divested."

For an analyst ratings summary and ratings history on PPG Industries click here. For more ratings news on PPG Industries click here.

Shares of PPG Industries closed at $142.20 yesterday.

You May Also Be Interested In

• Oppenheimer Upgrades Intuitive Surgical (ISRG) to Outperform, 'Crowding Out Competitors Strategically Smart'
• Upwork Inc. (UPWK) PT Lowered to $9 at Canaccord
• Nebius soars on second quarter revenue beat