J.P. Morgan analyst Jeffrey Zekauskas maintained a Hold rating on PPG Industries (PPG – Research Report) today and set a price target of $115.00.
Jeffrey Zekauskas has given his Hold rating due to a combination of factors affecting PPG Industries. The company’s performance is impacted by a sluggish auto sector, where it is losing market share, and the European construction market is also facing challenges. Additionally, the strengthening US dollar against foreign currencies could adversely affect PPG’s international revenues.
PPG’s valuation metrics are less attractive compared to competitors like Axalta, which shows better demand and margin characteristics. PPG’s capital expenditures are expected to be high in the near future, potentially limiting free cash flow. Moreover, PPG’s stock has underperformed compared to the broader market and its peers, reflecting its lower growth rates in sales and earnings before interest and taxes (EBIT).
According to TipRanks, Zekauskas is a 4-star analyst with an average return of 5.3% and a 57.57% success rate. Zekauskas covers the Basic Materials sector, focusing on stocks such as Eastman Chemical, LyondellBasell, and Nutrien.