PPG Earnings: Margins Benefit From Selling Price Gains but Industrial Demand Remains Tepid

Narrow-moat PPG reported mixed second-quarter results, as continued volume pressure across its portfolio was met with strong price growth. Softening demand for architectural coatings globally along with a slower recovery in China weighed on volume, but favorable pricing provided a tailwind for margin growth. Despite challenges, management noted continued improvement in its supply chain and raw material availability, an encouraging development given the challenges both have posed in the last few years. We've increased our fair value estimate to $115 from $114 per share due to time value of money.