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Investing.com - JPMorgan has upgraded PPG Industries (NYSE:PPG) from Neutral to Overweight with a price target of $112.00, citing the company’s decreased market value relative to its business fundamentals. Currently trading at $99.56, InvestingPro analysis suggests the stock is undervalued, with a "GOOD" overall financial health score.
The investment bank believes PPG’s current earnings are being affected by cyclically weak business conditions rather than structural demand issues, suggesting potential for recovery. The company has demonstrated stability through its 54-year streak of dividend increases, maintaining a current yield of 2.85%.
JPMorgan expects PPG’s earnings growth to accelerate in 2026 and sees room for the company’s "somewhat depressed valuation" to expand, particularly in a lower interest rate environment.
Despite the upgrade, JPMorgan acknowledges that shorter-term business conditions remain difficult, with industrial coatings margins under pressure.
The firm estimates third-quarter 2025 EBITDA before minority interest at $720 million, below the consensus estimate of $744 million, though it considers the full-year 2025 consensus forecast to be reasonable.
In other recent news, PPG Industries reported its Q2 2025 earnings, revealing a minor miss on earnings per share (EPS) but exceeding revenue expectations. The company posted an EPS of $2.22, slightly below the projected $2.23, while revenue reached $4.2 billion, surpassing the anticipated $4.16 billion. In analyst updates, Bernstein SocGen Group raised its price target for PPG Industries to $140, maintaining an Outperform rating, despite a recent 5% decline in shares. BMO Capital also reiterated its Outperform rating, although it adjusted its price target to $130 from $131, highlighting PPG’s capacity to drive growth even in challenging conditions. Furthermore, PPG announced the appointment of Joe Gette as the new general counsel, effective January 2026, succeeding Anne M. Foulkes, who will retire. These developments reflect the company’s ongoing strategic adjustments and analyst confidence in its future performance.
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