KeyBanc Capital Markets maintained its Sector Weight rating on PPG Industries on Thursday in a research note authored by analyst Aleksey Yefremov. The firm pointed to PPG’s initial guidance for 2026 as indicating roughly 4% growth in earnings per share before accounting for share repurchases, and noted the company is trading at a price-to-earnings ratio of 15.94 with a market capitalization of $25.57 billion.
KeyBanc described the broader demand environment as "still challenging, relatively flat," yet emphasized that PPG’s early 2026 outlook appears to support modest EPS expansion even before the impact of buybacks. Data cited by InvestingPro shows management has been actively repurchasing shares, a dynamic that could lift per-share metrics above the firm’s roughly 4% organic growth projection.
While recent reported results did not demonstrate a clear inflection point to stronger earnings momentum, KeyBanc said they appear to form "a solid base for a modest 'up into the right' earnings story." The research note singled out small but encouraging signs within PPG’s refinish and general industrial segments, adding that "the worst is likely over" for those parts of the coatings business.
Despite observing what it called "relatively favorable risk/reward" for PPG shares, KeyBanc retained a neutral stance. The firm pointed to fair valuation metrics - specifically, 10.6x 2026 EV/EBITDA - and stated that "greater upside opportunities are available elsewhere in chemicals," which underpins their decision to keep a Sector Weight rating.
PPG’s most recent quarterly results were mixed. Adjusted earnings per share for the fourth quarter came in at $1.51, shy of the $1.58 analyst estimate. Revenue for the quarter totaled $3.91 billion, beating the consensus forecast of $3.78 billion and rising 5% from the year-ago period. PPG said organic sales increased 3% year-over-year, driven by higher selling prices and volume growth across all regions.
Analysts have responded to the results with differing assessments. BofA Securities raised its price target for PPG to $118, citing the company’s supportive culture for organic growth. Mizuho lifted its price target to $125 while maintaining an Outperform rating, attributing the move to higher market multiples. Evercore ISI reiterated a $112 price target and pointed to auto refinish destocking as a potential headwind in 2026.
Together, these viewpoints underscore a mix of optimism about PPG’s near-term stabilization and caution around valuation and specific end-market pressures, leaving the company positioned for modest upside but not a clear breakout in analyst sentiment.