Morgan Stanley analyst Vincent Andrews has maintained their neutral stance on AXTA stock, giving a Hold rating yesterday.
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Vincent Andrews’s rating is based on a combination of factors related to Axalta Coating Systems’ recent financial performance and future outlook. The company reported a better-than-expected EBITDA for the fourth quarter and provided a 2025 EBITDA guidance that exceeded market consensus. This positive performance, despite industry challenges, suggests a potential positive response in the stock price. However, the Free Cash Flow for 2024 fell short of the company’s own revised guidance, which might limit investor enthusiasm.
Additionally, the guidance for 2025 Free Cash Flow is below the consensus estimates, raising concerns about future cash generation. Sales in the Performance Coatings segment were weaker than expected, while Mobility Coatings outperformed. Despite these mixed results, Axalta continues to achieve share gains and implement cost-saving initiatives. These factors collectively contribute to a Hold rating, reflecting a balanced view of potential risks and opportunities.
In another report released yesterday, Citi also maintained a Hold rating on the stock with a $42.00 price target.