Vincent Andrews, an analyst from Morgan Stanley, maintained the Hold rating on PPG Industries (PPG – Research Report). The associated price target remains the same with $120.00.
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Vincent Andrews has given his Hold rating due to a combination of factors related to PPG Industries’ strategic initiatives and market positioning. The company is undergoing a strategic shift under CEO Tim Knavish, focusing on organic growth rather than mergers and acquisitions, which has been their historical approach. This includes optimizing their portfolio through divestitures and enhancing commercial and operational excellence. Furthermore, PPG is investing in innovation both in product chemistry and delivery systems to meet customer demands for sustainable solutions and improved productivity.
While these initiatives are promising, they are expected to take time to fully integrate into PPG’s operations. The company’s strategy aims to increase pricing power and customer retention by embedding products into broader systems, which could lead to higher switching costs for customers. However, the full impact of these changes on PPG’s financial performance remains uncertain in the near term, justifying the Hold rating as the company transitions through this strategic pivot.
According to TipRanks, Andrews is a 4-star analyst with an average return of 4.8% and a 60.42% success rate. Andrews covers the Basic Materials sector, focusing on stocks such as Sherwin-Williams Company, Mosaic Co, and PPG Industries.
In another report released on June 13, Bank of America Securities also maintained a Hold rating on the stock with a $129.00 price target.