With a market cap of $23.1 billion, PPG Industries, Inc. (PPG) is a global manufacturer of paints, coatings, specialty materials, and industrial products headquartered in Pittsburgh, Pennsylvania. It operates through three segments: Global Architectural Coatings; Performance Coatings; and Industrial Coatings, supplying products and services to consumers, contractors, and industrial customers worldwide.
Shares of the company have underperformed the broader market over the past 52 weeks. PPG stock has declined 11% over this time frame, while the broader S&P 500 Index ($SPX) has gained 23.3%. Moreover, shares of the company have plunged marginally on a YTD basis, compared to SPX's 7.4% rally.
Looking closer, PPG stock has lagged behind the State Street Materials Select Sector SPDR ETF's (XLB) 12.4% return over the past 52 weeks and 8.1% rise in 2026.
On Apr. 28, PPG shares dipped 2.4% after the company released its FY2026 Q1 earnings. The company reported net sales of $3.93 billion, driven by higher selling prices, favorable foreign currency impacts, and continued strength in aerospace and protective coatings demand. Adjusted EPS increased 6% to $1.83, beating Wall Street expectations. The company delivered organic sales growth for the fifth consecutive quarter, supported by strong performance in aerospace, traffic solutions, and protective and marine coatings.
For the fiscal year ending in December 2026, analysts expect PPG's adjusted EPS to grow 4.6% year-over-year to $7.93. The company's earnings surprise history is mixed. It beat or met the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings and 14 “Holds.”
The configuration is bearish than two months ago when the stock had ten “Strong Buy” suggestions.
On April 30, Citigroup analyst Patrick Cunningham maintained a “Neutral” rating on PPG Industries and slightly raised the price target to $114 from $113.
Its mean price target of $122.89 implies a premium of 20.8% from the current market prices. The Street-high price target of $135 implies a potential upside of 32.7% from the current price levels.
