PPG price target lowered to $162 from $164 at KeyBanc

KeyBanc lowered the firm’s price target on PPG to $162 from $164 and keeps an Overweight rating on the shares. Volumes have yet to see a material improvement, although improvement trend over the last few quarters is convincing, the firm says. KeyBanc views the flat result in Q1 to be on the lighter side but expecta improvement as 2024 unfolds, and accelerating into 2025. Investors are clearly concerned about margin cycle turning lower, but the firm sees the current level of petrochemical inflation as more than manageable in the context of PPG’s long-term margin history, modest rise in costs so far, and proactive portfolio improvement.