PPG Industries: Hit Hard By Costs, But There Are Multiyear Growth Tailwinds

 

At the moment, PPG Industries (PPG) is an interesting example of how shorter-term concerns and longer-term opportunities can intersect. Nobody really seems to doubt the company’s leverage to recoveries in a range of end-markets, including aero, autos, “general industrial”, and residential construction, nor growth opportunities in areas like packaging and EVs. Likewise, there doesn’t seem to be too much concern that PPG will generate synergies from a host of recent deals. On the other hand, cost inflation now looms much larger as a near-term threat.

While PPG shares sold off after disappointing Q2 results and guidance, they’re still up a bit more than the average industrial over the last six months, so I don’t exactly regret my bullish stance in February. I continue to like the opportunities in front of the company in 2021 and 2022, and although the valuation isn’t dirt cheap, I still like it on balance.

 

Click here to continue: 

PPG Industries: Hit Hard By Costs, But There Are Multiyear Growth Tailwinds