Longbow analyst Dmitry Silverstein upgraded PPG Industries to Buy with a $130 price target on shares. The analyst believes PPG's efforts to improve organic growth may be gaining momentum given evidence of accelerating growth in PPG's store channel and increased traction from new higher priced products at Menards. Further, faster growth of auto-OEM, Industrial, Aerospace and EMEA businesses in 2H16, driving above-consensus performance, upward earnings revisions and expanding multiples, the analyst wrote.

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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.

Deutsche Bank analyst David Begleiter lowered the firm's price target on PPG to $155 from $160 and keeps a Buy rating on the shares following the Q1 report. The analyst says the company's second half of the year earnings ramp overshadows the volume inflection. With Q1 volumes falling short of expectations and Q2 guidance modestly below expectations as industrial and European demand remains weak, investors are concerned the company's second half guidance is too high, the analyst tells investors in a research note. The firm believes PPG will be able to achieve its earnings guidance, albeit at the low end of the range which represents more reasonable 11% growth.