PPG has been downgraded from “Buy” to “Neutral” by BofA Securities, with a revised price target of $126. The shift comes amid growing concerns over input cost inflation and exposure to economically sensitive sectors, both of which could hinder near-term performance.
🔸 Tariff-Driven Headwinds
PPG’s Mexico-based Comex unit is feeling the pinch from persistent tariffs, which are expected to raise raw material costs and squeeze margins across the board.
🔸 Inflation Impact on Key Inputs
While inflation may be muted in some areas, critical inputs like tin plate and epoxy resin are seeing price spikes, threatening to escalate production costs in 2025.
🔸 Economic Sensitivity in Auto and Refinish Segments
With significant exposure to cyclical markets like automotive OEM and refinish coatings, $PPG is vulnerable to broader economic slowdowns that could weaken demand in these segments.
Given these mounting pressures, BofA is taking a more cautious stance, viewing the risk-reward profile as more balanced in the near term.
💸 Dividend Fundamentals for $PPG
💰 Annual Dividend: $2.72
📉 Yield: Around 2.68%
🧮 Payout Ratio: Roughly 56.4%
📈 Dividend Growth: 54 consecutive years
Even with headwinds ahead, $PPG’s solid dividend history and consistent payout growth remain attractive for long-term, income-focused investors.