UBS analyst Joshua Spector upgraded the rating on Axalta Coating Systems (AXTA – Research Report) to a Buy today, setting a price target of $40.00.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Joshua Spector has given his Buy rating due to a combination of factors that suggest Axalta Coating Systems is undervalued and has potential for growth. Despite the company’s exposure to the automotive sector, which accounts for a significant portion of its sales, the impact is mitigated by the fact that only a fraction of this exposure is tied to North America. Furthermore, Axalta’s Performance segment, which includes Industrial and Refinish, has shown resilience through economic cycles, maintaining stable volumes and positive pricing.
Additionally, Axalta is experiencing growth in its Auto OEM and industrial volumes due to new business wins, and the management has consistently exceeded EBITDA expectations. While there is a cautious outlook for 2025, with a slight reduction in EBITDA estimates, the market appears to have already priced in a more severe downside scenario. The company’s manageable leverage and potential for cash deployment, along with a favorable valuation, support the Buy rating, with a price target suggesting a substantial upside.
According to TipRanks, Spector is an analyst with an average return of -1.0% and a 47.90% success rate. Spector covers the Basic Materials sector, focusing on stocks such as Air Products and Chemicals, Albemarle, and Celanese.
In another report released on April 3, Wells Fargo also reiterated a Buy rating on the stock with a $42.00 price target.