UPDATE: J.P. Morgan Reiterates Overweight Rating, Raises PT on PPG Industries
In a report published Friday, J.P. Morgan & Co. reiterated its Overweight rating on PPG Industries (NYSE: PPG), and raised its price target from $130.00 to $136.00.
J.P. Morgan noted, “PPG is a focused industrial coatings company. Major, well-functioning coatings companies have after-tax returns on capital comfortably above 12%. High market share positions and effective capital deployment are able to lift returns further. Financial returns for the coatings industry are now understated due to the vestigial effects of the construction downturns in North America and Europe, weak industrial demand and the slowing of the Chinese economy. PPG is a technically strong coatings company with broader scope and scale than Sherwin-Williams or Valspar. PPG has a far larger and more diverse presence globally and it has a far stronger position with global OEM manufacturers. We do not believe that these competitive advantages are fully reflected in PPG's current share price. We rate PPG Overweight.”
PPG Industries closed on Thursday at $134.39.
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Tags: J.P. Morgan & Co.