Analyst Ratings January 29, 2026

JPMorgan Raises PPG Industries Price Target to $126 After Mixed Q4 Results

Bank keeps Overweight rating as cash generation and revenue beat temper an EPS shortfall and ongoing auto refinish weakness

By Derek Hwang PPG
JPMorgan Raises PPG Industries Price Target to $126 After Mixed Q4 Results
PPG

JPMorgan increased its 12-month price objective for PPG Industries to $126 from $117 while reaffirming an Overweight rating, citing stronger-than-expected cash flow and a revenue beat in the company’s fourth-quarter 2025 results. PPG reported solid operational cash generation that outpaced JPMorgan’s model, even as adjusted EPS missed estimates and auto refinish markets remained soft. Other analysts offered varied reactions, and PPG issued fiscal 2026 EPS guidance broadly in line with consensus.

Key Points

  • JPMorgan raised its PPG price target to $126 from $117 and kept an Overweight rating.
  • PPG reported $1.9 billion in operating cash flow for 2025, above JPMorgan’s $1.45 billion model, and $715 million in levered free cash flow over the last twelve months.
  • Q4 adjusted EPS of $1.51 missed expectations while revenue of $3.91 billion exceeded estimates; PPG set FY2026 EPS guidance of $7.70 to $8.10.

JPMorgan raised its price target on PPG Industries (NYSE:PPG) to $126.00 from $117.00 and maintained an Overweight rating following the company’s fourth-quarter 2025 financial disclosure. The new target sits close to InvestingPro’s Fair Value estimate, which indicates that PPG shares, trading at $114.66 with a P/E ratio of 15.94, may be undervalued.

The bank’s revision reflects a mix of encouraging and disappointing elements in PPG’s quarterly report. Among the positives, PPG generated cash flow from operations of $1.9 billion for 2025, notably above JPMorgan’s modeled expectation of $1.45 billion. That stronger cash conversion likely informed the more optimistic valuation. The company’s $25.72 billion market capitalization accompanies $715 million in levered free cash flow over the last twelve months and supports a 2.49% dividend yield.

Yet not all metrics were favorable. PPG’s adjusted earnings per share for the fourth quarter came in at $1.51, below analyst expectations of $1.58. Still, the company exceeded revenue forecasts, posting $3.91 billion against a consensus estimate of $3.78 billion, a 5% increase year-over-year. On an organic basis, PPG recorded 3% sales growth driven by higher selling prices and volume growth across all geographic regions.

Auto refinish markets were highlighted as a persistent area of weakness during the quarter. CEO Tim Knavish, however, signaled some signs of improvement, saying there were "green shoots" in the segment. He noted that December accident claims were down 2% year-over-year, an improvement versus the 7-9% year-over-year decline reported through the fourth quarter of 2025.

Market analysts reacted with a range of assessments. BofA Securities raised its price target to $118, pointing to PPG’s culture of organic growth. Evercore ISI retained a $112 price target while calling out the challenges in the auto refinish business. KeyBanc Capital Markets kept a Sector Weight rating, suggesting modest EPS growth amid difficult demand conditions. Mizuho lifted its price target to $125, attributing the move to higher market multiples.

Management provided fiscal year 2026 guidance for earnings per share between $7.70 and $8.10, a range that aligns closely with consensus expectations. The guidance, combined with the company’s operational cash performance and mixed quarterly results, informed the spectrum of analyst responses and the single-point price-target moves.

Overall, JPMorgan’s target increase reflects confidence in PPG’s cash generation and revenue resilience, while the EPS shortfall and weakness in auto refinish highlight areas the company must navigate in the coming quarters.

Risks

  • Continued weakness in auto refinish markets could pressure segment performance and overall demand - this affects automotive suppliers and coatings end markets.
  • Earnings volatility after an adjusted EPS miss in Q4 indicates potential downside to near-term profitability - relevant to industrials and materials investors.
  • Sales and margin sensitivity to demand conditions could keep EPS growth modest, as noted by some analysts, impacting industrials sector outlook.

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