Wolfe Research has kept a Peerperform rating on PPG Industries (NYSE: PPG), reaffirming a neutral view on the coatings and specialty materials company. The research note cites encouraging signs of share gains and product-led momentum, while also underscoring the need for broader macro improvement before recent gains can be extended.
At the time of the note, PPG shares were trading at $126.51, a level that sits close to the 52-week high of $126.74. InvestingPro data included in the research assessment indicates the stock is modestly undervalued when compared to its Fair Value estimate.
Wolfe Research emphasized that the company’s apparent market share gains are linked to recent new product introductions that the firm characterizes as incorporating superior technology. The research team also pointed to PPG’s deliberate move into larger end-market packages, noting the company is providing offerings that extend beyond its traditional product set to include additional services.
The firm expressed particular optimism about PPG’s pipeline positioning, suggesting that the company could capitalize further if demand in core end markets improves. Wolfe singled out aerospace as a potential area for momentum and identified a gradual inflection in the refinish segment as another scenario that could support sustained gains.
Despite those favorable operational indicators, Wolfe Research cautioned that some macroeconomic improvement would be necessary for PPG to continue building on recent healthy performance. The firm applied that caveat broadly across its coverage, signaling that external demand conditions remain an important constraint.
Separately, PPG released its fourth-quarter 2025 financial results. Adjusted earnings per share were $1.51, which missed consensus expectations of $1.58. Revenue for the quarter totaled $3.91 billion, however, beating the forecast of $3.78 billion. Wolfe and other market participants will likely weigh the top-line strength against the EPS shortfall when assessing near-term performance.
These developments underline the dual nature of the current assessment: operational progress and product-driven share gains on one hand, and sensitivity to macroeconomic trends on the other. Investors and analysts typically monitor both revenue trajectories and earnings per share closely, as each metric provides different insight into underlying business momentum and profitability.
For now, Wolfe Research’s Peerperform rating reflects a wait-and-see posture — recognition of positive product and share dynamics tempered by the view that broader economic improvement is needed to convert that momentum into sustained upside.