Summary
Mizuho has increased its price objective for PPG Industries to $125.00 from $118.00 and continues to carry an Outperform rating on the shares. The revised target equates to about a 13% potential upside from the cited current price of $110.28. Mizuho attributed the change primarily to a rise in peer and market valuation multiples rather than to an improvement in PPG’s short-term operating results.
Analyst update and valuation context
The firm noted that InvestingPro data flags PPG as appearing undervalued under its Fair Value assessment, with analyst targets in the range of $109 to $130. Mizuho’s adjustment to $125 is framed around a multiple expansion observed across peers and in broader market comparables.
Quarterly performance
PPG reported adjusted earnings per share of $1.51 for the December quarter of 2025, which fell short of Mizuho’s internal estimate of $1.60 and the Bloomberg consensus of $1.58. The company did record 2% volume growth year-over-year in the period.
Guidance and forward-looking metrics
For fiscal 2026, Mizuho highlighted that PPG’s midpoint EPS guidance stands at $7.90, excluding the impact of share repurchases, versus consensus estimates of about $8.08. The company’s 2026 volume outlook was described as relatively flat. Mizuho observed that price increases of roughly 1% in the December 2025 quarter could account for a meaningful portion of the flat-to-low-single-digit sales guidance.
Share repurchases and cost trends
PPG repurchased $100 million of stock in the December 2025 quarter, bringing total buybacks for fiscal year 2025 to $790 million. Looking at input costs, raw material expenses are expected to be essentially flat year-over-year for the March 2026 quarter.
Full fourth-quarter snapshot
In broader fourth-quarter results, PPG delivered mixed outcomes. Adjusted EPS of $1.51 missed the analyst estimate of $1.58. Revenue, however, came in at $3.91 billion, ahead of the consensus $3.78 billion, and represented a 5% increase from the same quarter a year earlier. Organic sales grew 3% year-over-year, with the company attributing that increase to higher selling prices and volume growth across all regions.
Market reaction and context
Mizuho’s target increase reflects a valuation-driven view: higher peer and market multiples are the proximate reason for the new $125 objective, even though recent operational results included an EPS shortfall. The mix of a revenue beat and an EPS miss illustrates divergent drivers within the quarter—top-line strength from price and volume progression alongside profit metrics that underperformed analyst projections.
Key points
- Mizuho raises PPG’s price target to $125 from $118 and maintains an Outperform rating; the new target implies about 13% upside from $110.28.
- PPG posted adjusted EPS of $1.51 in the December 2025 quarter, missing both Mizuho’s $1.60 estimate and the Bloomberg consensus of $1.58, while volume grew 2% year-over-year.
- Revenue for the quarter was $3.91 billion, above the $3.78 billion consensus, with organic sales up 3% and a 5% revenue increase year-over-year; PPG repurchased $100 million of shares in the quarter and $790 million for fiscal 2025 in total.
Risks and uncertainties
- Valuation sensitivity - The target change is driven by higher peer and market multiples; if multiples compress, the implied upside could diminish. This primarily affects equity markets and investor sentiment.
- Execution and earnings risk - PPG’s adjusted EPS missed estimates in the December quarter, highlighting the risk that near-term profitability could underperform expectations. This implicates corporate earnings and industrial company credit metrics.
- Volume and pricing dynamics - Guidance pointing to flat volumes for 2026 and modest pricing increases suggests uncertainty in demand and pricing power, which affects industrials and manufacturers reliant on stable volumes and input-cost pass-through.
These developments reflect the company’s recent financial activity and the analyst update from Mizuho.