PPG Industries, Inc. (PPG), headquartered in Pittsburgh, Pennsylvania, manufactures and distributes paints, coatings, and specialty materials. Valued at $27.3 billion by market cap, the company makes protective and decorative coatings, flat glass, fabricated glass products, continuous-strand fiber glass products, and industrial and specialty chemicals.
Shares of this leading paints and coatings manufacturer have underperformed the broader market over the past year. PPG has declined 16% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.5%. In 2025, PPG stock is down marginally, compared to the SPX’s 4.2% rise on a YTD basis.
Narrowing the focus, PPG’s underperformance is also apparent compared to the Materials Select Sector SPDR Fund (XLB). The exchange-traded fund has gained about 6.8% over the past year. Moreover, the ETF’s 8.1% gains on a YTD basis outshine the stock’s marginal losses over the same time frame.
On Jan. 30, PPG reported its Q4 results and its shares closed down by 6% in the following trading session. Its adjusted EPS of $1.61 did not meet Wall Street expectations of $1.65. The company’s revenue was $3.7 billion, falling short of Wall Street forecasts of $4 billion. PPG expects full-year adjusted EPS in the range of $7.75 to $8.05.
For fiscal 2025, ending in December, analysts expect PPG’s EPS to grow 1% to $7.95 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 23 analysts covering PPG stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, and 13 “Holds.”
This configuration is less bullish than a month ago, with 11 analysts suggesting a “Strong Buy.”
On Feb. 11, Wells Fargo & Company (WFC) analyst Michael Sison maintained a “Buy” rating on PPG with a price target of $135, implying a potential upside of 13.2% from current levels.
The mean price target of $134.40 represents a 12.7% premium to PPG’s current price levels. The Street-high price target of $154 suggests an ambitious upside potential of 29.1%.
