Morgan Stanley Stays Bullish on PPG Industries; Price Target Raised (PPG)

Morgan Stanley Stays Bullish on PPG Industries; Price Target Raised (PPG)

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Paint and coatings maker PPG Industries, Inc. (PPG) late Friday saw its price target boosted by analysts at JP Morgan.

The firm reiterated its “Overweight” rating on PPG and raised its price target from $130 to $136. That new target suggests a small upside to the stock’s Friday closing price of $133.26.

A JP Morgan analyst commented, “PPG is a focused industrial coatings company. Major, well-functioning coatings companies have after-tax returns on capital comfortably above 12%. High market share positions and effective capital deployment are able to lift returns further. Financial returns for the coatings industry are now understated due to the vestigial effects of the construction downturns in North America and Europe, weak industrial demand and the slowing of the Chinese economy. PPG is a technically strong coatings company with broader scope and scale than Sherwin-Williams or Valspar. PPG has a far larger and more diverse presence globally and it has a far stronger position with global OEM manufacturers. We do not believe that these competitive advantages are fully reflected in PPG’s current share price. We rate PPG Overweight.”

PPG Industries shares were unchanged in premarket trading Monday.

The Bottom Line
Shares of PPG Industries (PPG) have a 1.77% dividend yield, based on Friday’s closing stock price of $133.26. The stock has technical support in the $124-$125 price area. The shares are trading near all-time highs.

PPG Industries, Inc. (PPG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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