Paint, coatings, chemicals, and glass maker PPG Industries, Inc. ( PPG ) on Tuesday caught a big upgrade from analysts at KeyBanc.
The firm said it boosted its rating on PPG to "Buy" with a $100 price target, suggesting a 21% upside to the stock's Monday closing price of $82.55.
A KeyBanc analyst commented, "A near-term catalyst for PPG is its upcoming capital markets day where we expect the Company to lay out a positive long-term outlook for its core businesses. PPG generates a substantial amount of cash, which it uses to invest in growth and further strengthen its balance sheet, while also returning a considerable amount to shareholders through dividends and share buybacks. Its past and future uses of cash will likely be highlighted in NYC on December 5, and only add to our favorable view of PPG. While we expect some caution to be expressed when it reviews near-term implications of choppy demand in mature markets and recent challenges in optical coatings, the long-term outlook should be solid and supported by the investments it has made in the Company the last few years."
PPG shares rose $1.26, or +1.5%, in premarket trading Tuesday.
The Bottom Line
Shares of PPG Industries ( PPG ) have a 2.76% dividend yield, based on last night's closing stock price of $82.55. The stock has technical support in the $74-$77 price area. If the shares can firm up, we see overhead resistance around the $85-$90 price levels.
PPG Industries, Inc. ( PPG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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