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Investing.com - Mizuho (NYSE:MFG) maintained its Outperform rating and $125.00 price target on PPG Industries (NYSE:PPG) stock Monday following meetings with the company’s CFO Vince Morales and Director of Investor Relations Alex Lopez. According to InvestingPro data, PPG (WA:IBSP) currently trades at $108.67 with a "GOOD" overall financial health score, suggesting potential upside from current levels.
The research firm noted that PPG management acknowledged the company’s lack of organic growth in recent years, attributing it to a previous focus on mergers and acquisitions and subsequent integration efforts. PPG has now shifted its priorities toward organic growth, targeting 2-4% growth moving forward. The company’s strong dividend history, having raised dividends for 54 consecutive years, demonstrates its commitment to shareholder returns.
PPG executives indicated that near-term business trends remain consistent with previous guidance provided to investors, suggesting no significant changes to the company’s outlook since its last financial update.
Share buybacks have emerged as a key priority for PPG’s capital deployment strategy, according to the meetings. The company plans to be highly selective with future acquisitions, while noting that its current net leverage is low and at reasonable levels.
Mizuho maintained its earnings estimates for PPG Industries following the investor meetings, with no changes to its financial projections for the specialty chemicals and coatings manufacturer.
In other recent news, PPG Industries has introduced a new line of eco-friendly powder coatings, PPG ENVIROLUXE™ Plus, which incorporates up to 18% post-industrial recycled plastic. This product aims to reduce carbon footprints by up to 30% compared to standard durable powders and is formulated without per- and polyfluoroalkyl substances. In earnings-related updates, UBS has maintained a Neutral rating with a $111 price target for PPG Industries, reflecting concerns about growth trajectory and potential headwinds. UBS projects lower near-term growth due to weaker macroeconomic conditions and higher raw material costs. Meanwhile, Bernstein SocGen Group reiterated an Outperform rating with a $166 price target, highlighting PPG’s focus on improving earnings and volume growth through restructuring efforts. Jefferies revised PPG’s price target to $110, citing ongoing challenges in the automotive sector. Despite these challenges, potential margin improvements are anticipated due to increased productivity and lower raw material costs. Bernstein analysts also favored PPG in the diversified coatings sector, noting its potential for improved performance following significant restructuring efforts.
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