Baird analyst Ghansham Panjabi noted PPG posted a modest beat for Q4 as the company continues to execute on margin recovery across its portfolio. He said a weaker macroeconomic backdrop, especially in Auto OEM, is likely weighing on the near-term outlook, with the implied acceleration in earnings throughout 2019 the overwhelming conference call focus. Panjabi reiterated his Outperform rating and $115 price target on PPG shares.

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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.