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In a challenging market environment, PPG Industries Inc. (NYSE: NYSE:PPG (WA:IBSP)), a $25 billion market cap company, has seen its stock price touch a 52-week low, reaching $110.17. According to InvestingPro analysis, the stock appears undervalued at current levels. The paints and coatings giant has faced headwinds over the past year, reflected in a significant 1-year change with a decline of 20.49%. Despite challenges, the company maintains strong fundamentals with $15.85 billion in revenue and a healthy EBITDA of $2.7 billion. Investors and analysts are closely monitoring the company’s performance as it navigates through global supply chain issues, raw material cost inflation, and changing demand patterns in key markets. The current price level marks a critical juncture for PPG, as stakeholders consider the company’s strategic moves to rebound from this low point. InvestingPro has identified 8 additional key investment tips for PPG, including its impressive dividend history and shareholder-friendly policies.
In other recent news, PPG Industries has issued €900 million in notes due in 2032, with plans to use the proceeds for general corporate purposes such as working capital and potential acquisitions. This financial maneuver is part of the company’s strategy to bolster its financial structure. Meanwhile, JPMorgan has downgraded PPG Industries’ stock from Overweight to Neutral, citing better performance by industry peer Axalta and potential challenges in the political climate affecting PPG’s operations in Mexico. RBC Capital Markets has also adjusted its price target for PPG Industries to $120, retaining a Sector Perform rating while noting challenges in the automotive and industrial sectors.
Despite these headwinds, PPG Industries is expected to benefit from stable volumes and strong markets in Mexico and China. Additionally, BMO Capital Markets has lowered its price target to $130 but maintains an Outperform rating, emphasizing PPG’s strategic focus on growth and financial discipline following recent divestitures. Mizuho (NYSE:MFG) Securities has also revised its price target to $140, maintaining an Outperform rating, and highlights PPG’s plans for a $400 million share buyback in early 2025.
PPG Industries’ recent financial outlook indicates a midpoint 2025 earnings per share of $7.90, which is below some analyst estimates. The company expects flat to slightly declining sales in the first quarter of 2025, with a potential increase later in the year due to new business wins. PPG has also reorganized its financial reporting to reflect recent divestitures and has created a new segment for Global Architectural Coatings.
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