UBS maintains a Neutral rating on PPG Industries (NYSE:PPG) and lowers the price target from $125 to $115.PPG's stock price slightly decreased to $104.11, showing a minor decline of -0.31%.The company is set to announce its third-quarter 2025 financial results on October 28, which could impact its stock price and investor sentiment.PPG Industries (NYSE:PPG) is a global supplier of paints, coatings, and specialty materials, operating in sectors such as automotive, aerospace, and industrial coatings. The comp ...

Group 1 - ClearBridge Investments reported a significant rally in US equities during Q2 2025, with the S&P 500 returning 10.9% and the Russell Midcap Growth Index advancing 18.2% [1] - Growth stocks outperformed value stocks across market caps, contributing to the strategy's outperformance driven by strong performance in the "mid cap plus" segment and solid stock selection in IT, industrials, and financials [1] - The Sherwin-Williams Company (NYSE:SHW) experienced a one-month return of -3.79% and a 52-week loss of 5.89%, with a market capitalization of $88.065 billion as of September 16, 2025 [2] Group 2 - ClearBridge Growth Strategy added The Sherwin-Williams Company to its portfolio, highlighting its high-quality business model and potential for earnings growth as housing turnover normalizes [3] - The company is noted for its strong through-cycle pricing power and defensive characteristics, which may provide a natural offset during periods of volume decline [3] - Despite its potential, The Sherwin-Williams Company is not among the 30 most popular stocks among hedge funds, with 67 hedge fund portfolios holding the stock at the end of Q2 2025, a slight decrease from 68 in the previous quarter [4]

Company Overview - PPG Industries, Inc. has a market capitalization of approximately $25 billion and is a global leader in paints, coatings, and specialty materials, serving various industries including automotive, aerospace, packaging, industrial equipment, and construction [1] - The company operates through three main segments: Global Architectural Coatings, Performance Coatings, and Industrial Coatings, providing innovative products across more than 70 countries [2] Stock Performance - PPG stock has decreased by 19.3% from its 52-week high of $137.24 and has fallen 1.2% over the past three months, underperforming the Materials Select Sector SPDR Fund (XLB), which rose by 3.7% in the same period [3] - Year-to-date, PPG stock is down 7.3%, while XLB has gained nearly 9%, and over the past 52 weeks, PPG shares have declined by 11.8%, contrasting with XLB's marginal drop [4] Financial Performance - On July 29, PPG Industries reported revenue of $4.2 billion, exceeding expectations, but shares fell by 5.3% the following day due to a profit decline to $450 million [5] - The adjusted EPS of $2.22 matched estimates but decreased from $2.35 in the prior-year quarter, with segment weaknesses noted, including a 5% sales drop in Global Architectural Coatings and a 5% decline in Industrial Coatings [5] Competitive Landscape - Rival Sherwin-Williams Company has outperformed PPG, with its shares rising by 5.9% year-to-date and dropping 3.7% over the past 52 weeks [6] - Despite PPG's underperformance, analysts maintain a moderately optimistic outlook, with a consensus rating of "Moderate Buy" and a mean price target of $128.50, representing a 16.1% premium to current levels [6]

Summary of the Chemical Distributor Survey in China Industry Overview - The survey focuses on the chemical distribution industry in China, particularly in major industrial cities such as Shanghai, Wuxi, Changzhou, Nanjing, Linyi, and Qingdao, which collectively have a population of approximately 70 million and are part of a region with around 550 million people [doc id='16']. Key Findings - **Sales Growth**: The survey indicated modest sales growth in the chemical sector, particularly in paint chemicals, with a noted acceleration in August. However, overall trends were weaker than expected, with orders lagging behind inventories, raising concerns about volume risks in the fall [doc id='1'][doc id='16']. - **Cyclical Confidence**: Cyclical confidence remains low, comparable to levels seen during the COVID-19 pandemic. The lack of sales acceleration suggests that tariff-related challenges are counteracting typical seasonal demand increases [doc id='1'][doc id='16']. - **Sales Outlook**: The sales outlook is described as soft, with persistent sourcing difficulties impacting expectations. Shanghai shows the strongest trends, while Qingdao exhibits the weakest [doc id='16']. Sales Metrics - **Sales Performance**: Monthly sales reached their highest level since November 2024, but cyclical confidence remains muted. The survey results indicate that the order-to-inventory ratio is flat, and sales acceleration is off its peak [doc id='8'][doc id='10']. - **Sales Ratings**: The survey uses a rating scale from -2 (weak) to 2 (strong). Current ratings for various sectors indicate a generally weak performance, with many sectors rated below zero [doc id='20']. Sector-Specific Insights - **Paint Distributors**: The current rating for paint distributors is -1.00, indicating a soft market compared to previous surveys [doc id='20']. - **Chemical End-Markets**: The outlook for chemical end-markets remains weak, with several sectors such as construction, clothing, and packaging rated negatively [doc id='20']. Additional Observations - **Market Sentiment**: The overall sentiment among distributors is weak, with expectations for future sales remaining low. This sentiment is reflected in the survey's findings, which highlight ongoing challenges in the market [doc id='1'][doc id='16']. - **Potential Risks**: The combination of weak demand, high inventories, and tariff-related headwinds poses significant risks to the chemical distribution sector in the near term [doc id='1']. Conclusion - The survey results indicate a challenging environment for chemical distributors in China, characterized by weak sales growth, low cyclical confidence, and a soft sales outlook. The industry faces several headwinds that could impact future performance, necessitating close monitoring of market conditions and distributor sentiment [doc id='1'][doc id='16'].

Financial Performance Overview - Sales increased by 0.7% to $6,314.5 million compared to $6,271.5 million in 2Q 2024[7] - Gross profit increased by 1.8% to $3,118.3 million compared to $3,063.4 million in 2Q 2024[7] - Gross margin expanded by 60 bps to 49.4%[7] - Reported EPS decreased by 14.3% to $3.00, while adjusted EPS decreased by 8.6% to $3.38[7] - EBITDA decreased by 12.3% to $1,260.8 million, representing 20.0% of sales[7] - Adjusted EBITDA decreased by 8.2% to $1,319.8 million, representing 20.9% of sales[7] Segment Performance - Paint Stores Group (PSG) sales increased by 2.3% to $3,702.2 million[11] - Consumer Brands Group (CBG) sales decreased by 4.1% to $809.4 million[17] - Performance Coatings Group (PCG) sales decreased by 0.3% to $1,801.1 million[23] Guidance - Third Quarter 2025 sales are expected to be up or down low-single digit percentage[36] - Full Year 2025 sales are expected to be up or down low-single digit percentage[36]