Analyst Vincent Andrews of Morgan Stanley maintained a Hold rating on PPG Industries (PPG – Research Report), reducing the price target to $128.00.
Vincent Andrews’s rating is based on revised financial forecasts and guidance updates for PPG Industries. The price target for PPG has been lowered from $142 to $128, reflecting a valuation of approximately 12.5 times the estimated 2025 EBITDA. This adjustment comes after considering changes in earnings per share (EPS) estimates and the guidance issued for 2025, which predicts low single-digit organic sales growth and a slight expansion in segment margins.
Furthermore, PPG’s guidance for the first quarter of 2025 anticipates flat to slightly negative organic sales growth and a contraction in segment margins, indicating potential challenges in the near term. These factors, combined with a revised outlook for future EPS, contribute to the Hold rating as the stock’s potential for price appreciation appears limited in the current scenario.
Andrews covers the Basic Materials sector, focusing on stocks such as Eastman Chemical, Mosaic Co, and Sherwin-Williams Company. According to TipRanks, Andrews has an average return of 5.8% and a 64.91% success rate on recommended stocks.
In another report released yesterday, Evercore ISI also maintained a Hold rating on the stock with a $145.00 price target.