• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Fixr.com Announces 2021 Paint & Color Trends

    2021 CEO Forum

    Automotive OEM Coatings

    Mixing Equipment Directory

    The Wood Coatings Market
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Video Bites
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    Barentz Expands Canadian CASE Team

    Shepherd Color Company Opens Sales Office in China

    Chromaflo Technologies Awarded Gold Status CSR Rating by EcoVadis in EMEA

    RPM Reports Fiscal 2021 3Q Results

    TCSNE (NESCT) Hosting Golf Outing on Sept. 13, 2021
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    PPG Adds SEM Products to PPG ADJUSTRITE Commercial Estimating System

    HGTV Home by Sherwin-Williams Launches Ovation Plus

    Nippon Paint Marine’s New Self-polishing Antifouling Paint Applied to 5 Bulk Carriers

    PPG Honors Ideal Distributors with Automotive Refinish Platinum Distributor of the Year Award

    Dunn-Edwards Launches DECOPRIME
    Additives
    Binders
    Pigments
    Solvents

    Shepherd Color Company Opens Sales Office in China

    Chromaflo Technologies Awarded Gold Status CSR Rating by EcoVadis in EMEA

    Clariant Joins EU Circular Plastics Alliance

    AOC Provides Resins for Structure, Shell of Solar Car

    HSMG Receives Notice of Allowance from US Patent and Trademark Office
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Pilot Chemical Company

    Clariant Additives

    Shepherd Color Company, The

    Active Minerals

    Siltech Corporation
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Cleveland Coatings Society Zoom Meeting

    PCI Powder Coating Week

    Southern Society for Coatings Technology Annual Meeting and Technical Conference

    11th Asia Pacific Floor Fair and Guangzhou Paint & Coatings Fair

    Coatings for Africa
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Pilot Chemical Company

    Eagle Specialty Products

    Keim Additec Surface USA LLC

    Clariant Additives

    Siltech Corporation
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Expert's Opinion

    PPG Industries - Analyst Reaffirms Buy After Meetings with Management

    ...

    PPG Industries - Analyst Reaffirms Buy After Meetings with Management
    Related CONTENT
    • PPG Adds SEM Products to PPG ADJUSTRITE Commercial Estimating System
    • PPG Honors Ideal Distributors with Automotive Refinish Platinum Distributor of the Year Award
    • Coatings World CEO Forum Part 2
    • Sheboygan Paint Company Announces Leadership Hires
    • PPG Opens China Application Innovation Center in Zhangjiagang
    02.19.18

    PPG Industries (PPG: Buy, $130 PT) 
    Lights at End of Tunnel

    • We affirm our Buy on PPG after visiting with management. We caught up with senior management on Monday, including CEO Michael McGarry, CFO Vince Morales, SVP Tim Knavish, CTO David Bem, President, Asia Pacific Mike Horton, VP, US & Canada Architectural David Cole and numerous other executives. In our various discussions, we detected somewhat greater optimism than we would have anticipated, particularly on the subject of prospective volume growth. In this context, we reiterate our Buy on PPG shares and affirm our target of $130, which suggests upside potential of 12% including a dividend yield of 1.5%.

    • PPG may be ushering in a new era of growth. Management generally expressed a confident tone regarding prospects in Protective, Industrial, Packaging, Refinish and company-owned stores within Architectural Coatings, although trends remain sub-par in selected markets, such as Auto OEM and Architectural-DIY. On balance though, our belief is that PPGs volume growth of 3.0% in 4Q— the company’s best result in three years — is more likely to be the beginning of a new paradigm after three years of rather anemic growth, than...

    • We expect Auto Refinish to remain a great business for many years to come. Following negative sales trends suffered by peer Axalta in 1H17, investors began to question whether something has changed for the worse, fundamentally, in Refinish. We believe the answer to that question is “no”. PPG continues to enjoy reliable price increases, facilitated by...

    • Architectural Coatings outlook appears mixed. Commentary regarding company-owned stores was positive, especially with regard to non-residential markets. Here, PPG brands are being specified 50% more often after the company added 40 employees to focus on this effort last year. This effort will continue in 2018 with plans to add an additional 20-25 people. Of course, salespeople still need to convert these specifications to new orders after a typical lag time of 6-18 months for construction. Elsewhere… 

    • PPG is winning in Packaging Coatings. Within the realm of Packaging Coatings, PPG had focused historically on coatings for the outside of food and beverage cans, whereas competitors Valspar and Akzo dominated “inside the can”. In recent years however, PPG has developed and commercialized technology for bisphenol-A non-intent (BPA-NI) coatings to address consumers’ environmental concerns regarding exposure to BPA. This effort is proving to be successful. Nowadays, PPGs penetration...

    • Protective and Marine Coatings (PMC) prospects look good through 2019+. PPG is growing its Protective Coatings business at a double-digit pace in Asia. This is skewing PPGs business mix within PMC further toward Protective vs. Marine Coatings, consistent with the company’s strategy. Meanwhile...

    • We affirm our Buy rating and $130 price target. Our price target reflects total upside potential of 12%, including a dividend yield of 1.5%. PPG now trades at a 2018 P/E multiple of 18.0, which represents a discount of 3.4x or 16% vs. the average of three US coatings peers (SHW, AXTA and RPM). Importantly, we estimate that this discount would widen to ~35% pro forma for deployment of PPG’s excess capital vs. coatings peers. Likewise, PPG trades at 12.0x our 2018 estimate of EBITDA, or a discount of 1.4x vs. the average of US coatings peers. Our valuation of PPG is based on an average of two methodologies: DCF analysis and a relative P/E framework. Our DCF analysis suggests a warranted stock price of $131, based on a WACC of 7.8%. Using our relative P/E framework, wherein we apply a 5% premium to the S&P500 multiple, we calculate warranted value of $129 per PPG share.

    (Please see full report for details)

     
    Related Searches
    • valspar
    • refinish
    • protective coatings
    • coatings
    Suggested For You
    Relief Funds Accelerate into Puerto Rico Relief Funds Accelerate into Puerto Rico
    PPG Adds SEM Products to PPG ADJUSTRITE Commercial Estimating System PPG Adds SEM Products to PPG ADJUSTRITE Commercial Estimating System
    PPG Honors Ideal Distributors with Automotive Refinish Platinum Distributor of the Year Award PPG Honors Ideal Distributors with Automotive Refinish Platinum Distributor of the Year Award
    Coatings World CEO Forum Part 2 Coatings World CEO Forum Part 2
    Sheboygan Paint Company Announces Leadership Hires Sheboygan Paint Company Announces Leadership Hires
    PPG Opens China Application Innovation Center in Zhangjiagang PPG Opens China Application Innovation Center in Zhangjiagang
    PPG Becomes Vizient PPG Becomes Vizient's Paint Supplier
    PPG, Pittsburgh Penguins Foundation, Carnegie Science Center Provide School Assembly Program PPG, Pittsburgh Penguins Foundation, Carnegie Science Center Provide School Assembly Program
    What Are Automotive OEM Customers Looking for in Terms of Performance? What Are Automotive OEM Customers Looking for in Terms of Performance?
    PPG Extends Tender Offer Period for Tikkurila PPG Extends Tender Offer Period for Tikkurila
    Finnish Ministry of Economic Affairs & Employment Approves PPG Finnish Ministry of Economic Affairs & Employment Approves PPG's Acquisition of Tikkurila Shares
    PPG Honored by Bosma Enterprises with Employment Innovation Award PPG Honored by Bosma Enterprises with Employment Innovation Award
    Future Of Egypt Paints & Coating Industry And Post Covid-19 Pandemic Impact Future Of Egypt Paints & Coating Industry And Post Covid-19 Pandemic Impact
    PPG Extends Tender Offer Period for Tikkurila PPG Extends Tender Offer Period for Tikkurila
    2021 CEO Forum 2021 CEO Forum

    Related Expert's Opinion

    • Chemical Industry’s Response to Crisis While in Crisis

      Chemical Industry’s Response to Crisis While in Crisis

      ...
      Dean Curtis, President and CEO of ICIS 05.22.20

    • Automotive Coatings
      A Brief Introduction to Importance of Automotive Paint Additives

      A Brief Introduction to Importance of Automotive Paint Additives

      ...
      Swamini Kulkarni 05.18.20

    • Breaking News | Marine Coatings | Paint & Coatings Manufacturer News
      Jotun: It’s Time for a

      Jotun: It’s Time for a 'Revhullution'

      Jotun Hull Skating Solutions.
      Jotun 05.11.20


    • Additives
      Lux Research Predicts Which Chemical Manufacturing Platforms Will Be Electrified By 2050

      Lux Research Predicts Which Chemical Manufacturing Platforms Will Be Electrified By 2050

      Report shows innovations in CO2 electrolysis will lead to displacement of natural gas for pure carbon monoxide and formic acid production by 2050.
      Lux Research 04.07.20

    • Synthetic Biology Has High Potential as Alternative Production Method for Chemicals

      Synthetic Biology Has High Potential as Alternative Production Method for Chemicals

      Fermentation holds the key to cost savings, greater innovation, and creation of novel products.
      Lux Research 04.02.20

    • AkzoNobel: How Our Products Contribute to Critical Industries

      AkzoNobel: How Our Products Contribute to Critical Industries

      ...
      AkzoNobel 03.30.20


    • In the Future of Plastic Recycling, No Singular Technology Will Dominate

      In the Future of Plastic Recycling, No Singular Technology Will Dominate

      ...
      Lux Research 01.30.20

    • Breaking News
      Frost and Sullivan: Digital Transformation Poised to Revolutionize Paints and Coatings Industry

      Frost and Sullivan: Digital Transformation Poised to Revolutionize Paints and Coatings Industry

      Adoption of big data, AI, and AR will aid coatings companies to uncover new revenue streams and attract new customers.
      01.15.20

    • Market Reports  | Pigments

      Evolving Automotive Sector Fueling Global Pigments Market Trends

      APAC to also emerge as a strong growth avenue, Pankaj Singh writes.
      Pankaj Singh 12.06.19


    • Breaking News
      PPG

      PPG's TAUBMANS, WHITE Knight Paints Reveal Top 7 Mini-makeovers Achievable with Tax Refund

      Company’s paint experts team with Cherie Barber to inspire DIY transformations.
      08.12.19

    • Commercial Construction Index Shows Surge in New Business Confidence

      ...
      06.20.19

    • Breaking News
      PX - Analyst Trims PT as Merger with Linde Faces Regulatory Concerns in EU

      PX - Analyst Trims PT as Merger with Linde Faces Regulatory Concerns in EU

      ...
      09.02.18


    • Breaking News | Market Reports
      Production Shutdowns, Second Dip in Operating Rates Challenge Global Methyl Methacrylate Market

      Production Shutdowns, Second Dip in Operating Rates Challenge Global Methyl Methacrylate Market

      Research by IHS Markit.
      08.28.18

    • Breaking News
      Chemicals - Analyst Positive at IHS Markit’s 33rd annual World Petrochemical Conference

      Chemicals - Analyst Positive at IHS Markit’s 33rd annual World Petrochemical Conference

      ...
      08.26.18

    • Breaking News
      Lithium Landscape - Analyst Provides a

      Lithium Landscape - Analyst Provides a 'Who's Who' in Sector, Looks at 30+ Industry Players

      ...
      08.19.18

    Trending
    • Raw Material Availability, Prices Hikes May Be 2021’s Biggest Issue For Coatings, Ink Sectors
    • Raw Material Price Increases Pile Pressure On Paint Manufacturers
    • HGTV Home By Sherwin-Williams Launches Ovation Plus
    • Eastern Coatings Show 2021 Organizers Call For Papers
    • PPG Adds SEM Products To PPG ADJUSTRITE Commercial Estimating System
    Breaking News
    • Barentz Expands Canadian CASE Team
    • Shepherd Color Company Opens Sales Office in China
    • Chromaflo Technologies Awarded Gold Status CSR Rating by EcoVadis in EMEA
    • RPM Reports Fiscal 2021 3Q Results
    • TCSNE (NESCT) Hosting Golf Outing on Sept. 13, 2021
    View Breaking News >
    CURRENT ISSUE

    April 2021

      View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Kyowa Hakko Launches Heat-Treated Probiotic Strain for Eye Health
    CGA-7 Green Coffee Extract by Vidya Herbs Achieves Self-Affirmed GRAS Status
    Nutritional Complex Evidenced to Reduce Preterm Birth
    Coatings World

    Latest Breaking News From Coatings World

    Barentz Expands Canadian CASE Team
    Shepherd Color Company Opens Sales Office in China
    Chromaflo Technologies Awarded Gold Status CSR Rating by EcoVadis in EMEA
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    CMS Establishes New Payment for Pelvalon’s Eclipse System
    Varian, Google Cloud Partner to Bring Convenience to Cancer Therapy
    Resonetics Leases New Manufacturing Space in Costa Rica
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Frontage Expands Capabilities at its Clinical Site in Secaucus, NJ
    Ascendia Pharmaceuticals Poised for Expansion
    Bora Pharmaceuticals Adds Roller Compaction Capabilities
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Revlon Unveils New Fragrances Featuring Megan Thee Stallion & Sofia Carson
    Henkel Management Board Welcomes Wolfgang König
    Mielle Organics Gets a Major Investment
    Happi

    Latest Breaking News From Happi

    Nature’s Beauty Debuts Vegan Natural Body Care at Walgreens
    Estée Lauder Expands 'Beautiful' Fagrance Collection
    Mushrooms Are Key Ingredients in Beauty & Wellness
    Ink World

    Latest Breaking News From Ink World

    SE-DA Invests in Kornit Presto S
    Kumon North America Adds Speedmaster XL 106 from Heidelberg
    Iron Oxide Pigments Market to Register 4.7% CAGR from 2021 to 2028: GVR
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Dantex elevates Joseph Sanchez to digital business development manager
    Mactac's Kevin Clunie joins TLMI panel
    MacDermid announces two new global sales roles
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Precision Textiles Offers Biodegradable Medical Fabric
    Northshore Launches Megamax Briefs in New Colors
    Essity Acquires Distribution Rights to Sorbact in Australia and New Zealand
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    New Biosealant Could Stabilize Cartilage, Boost Healing After Injury
    Google Executive Joins SeaSpine's Board of Directors
    HSS and LimaCorporate Open Provider-Based 3D Design and Printing Facility
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Tive Multi-sensor Tracker Solo 5G Relies on Sensirion SHT33
    VTT in 2020: Successful Year Despite Globally Challenging Times
    Lux Research: 3D Printing Market to Reach $51 Billion in 2030

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login