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Investing.com - BMO Capital lowered its price target on PPG Industries (NYSE:PPG) to $130.00 from $131.00 on Thursday, while maintaining an Outperform rating on the stock. With a current market capitalization of $24.1 billion and P/E ratio of 20.4x, InvestingPro analysis indicates the stock is currently undervalued.
The research firm noted that PPG Industries has demonstrated its ability to drive core top-line and volume growth across its portfolio, despite operating in a challenging environment.
BMO Capital highlighted that the second quarter results marked the second consecutive quarter of volume growth for PPG (WA:IBSP), a trend the firm expects to continue and gradually accelerate as the company gains market share through innovation and improved sales focus.
The research firm cited PPG’s significant free cash flow as providing flexibility for share buybacks and selective bolt-on acquisitions, which should enable sustained earnings per share growth.
BMO Capital expects PPG Industries to recapture some of its valuation multiple, supporting the maintained Outperform rating despite the slight reduction in price target.
In other recent news, PPG Industries reported its Q2 2025 earnings, revealing a slight miss on earnings per share (EPS) but a beat on revenue. The company posted an EPS of $2.22, just below the forecasted $2.23. However, revenue reached $4.2 billion, surpassing expectations of $4.16 billion. These results indicate that while PPG Industries exceeded revenue expectations, the minor EPS miss has raised some concerns among investors. The company’s performance highlights ongoing challenges, particularly in regional demand. Despite these challenges, the revenue beat suggests some positive momentum in other areas. These developments are part of PPG Industries’ recent financial disclosures, which continue to attract attention from analysts and investors alike.
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