Bank of America has revised its rating on PPG Industries (PPG, Financial), downgrading the stock from "Buy" to "Neutral." The financial institution also adjusted the price target for PPG from $143 to $126. This change reflects concerns over the impact of tariffs, which are increasing raw material costs and could dampen demand for PPG's products.
Despite some reduction in PPG's exposure to the housing market, BofA highlights ongoing risks for the company's Mexico-based Comex business. The potential for tariffs to continue could further strain the Mexican economy, adding to the challenges faced by PPG.
Looking ahead, BofA notes that while limited reinflation is expected in 2025, year-over-year inflation could exceed 1% by 2026. This projection contributes to the cautious outlook on PPG's future performance in the market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for PPG Industries Inc (PPG, Financial) is $128.69 with a high estimate of $166.00 and a low estimate of $104.00. The average target implies an upside of 26.81% from the current price of $101.48. More detailed estimate data can be found on the PPG Industries Inc (PPG) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, PPG Industries Inc's (PPG, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for PPG Industries Inc (PPG, Financial) in one year is $128.25, suggesting a upside of 26.38% from the current price of $101.48. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the PPG Industries Inc (PPG) Summary page.
