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Axalta Coating Systems: Hold Rating Amidst Adjusted EBITDA Forecasts and Mixed Segment Performance

Axalta Coating Systems: Hold Rating Amidst Adjusted EBITDA Forecasts and Mixed Segment Performance

Axalta Coating Systems (AXTAResearch Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Vincent Andrews from Morgan Stanley maintained a Hold rating on the stock and has a $36.00 price target.

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Vincent Andrews has given his Hold rating due to a combination of factors affecting Axalta Coating Systems. The updated forecasts for Axalta’s earnings before interest, taxes, depreciation, and amortization (EBITDA) show a slight decrease for the upcoming quarters. Specifically, the second quarter of 2025 sees a minor reduction in expected EBITDA from $285 million to $283 million, and the forecast for 2027 is adjusted down from $1,312 million to $1,270 million.
These adjustments are primarily driven by a decrease in Performance Coatings sales and EBITDA, attributed to lower Refinish volumes, which is partially counterbalanced by an increase in Mobility Coatings sales and EBITDA due to higher light vehicle volumes. Additionally, there are positive effects from foreign exchange since the first quarter reporting. However, looking beyond 2025, the outlook is less optimistic with expected flat Refinish volumes and reduced margins in both operating segments, which contributes to the Hold rating.

Andrews covers the Basic Materials sector, focusing on stocks such as Sherwin-Williams Company, Westlake Corporation, and Cf Industries Holdings. According to TipRanks, Andrews has an average return of 5.0% and a 61.66% success rate on recommended stocks.

In another report released on June 12, Citi also maintained a Hold rating on the stock with a $34.00 price target.

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