Axalta Coating Systems (AXTA – Research 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 $40.00 price target.
Vincent Andrews has given his Hold rating due to a combination of factors impacting Axalta Coating Systems. The updated EBITDA estimates reflect a slight increase, driven by favorable foreign exchange movements and higher light vehicle production volumes. However, these positive factors are somewhat balanced by a modest decrease in refinish and commercial vehicle volumes expected in the second quarter.
Additionally, the raw material outlook remains largely unchanged, with potential benefits in the first quarter likely to be countered by rising inflation in the latter half of the year. These mixed elements contribute to a cautious stance, suggesting that while there are some positive developments, they are not sufficient to warrant a more optimistic rating at this time.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AXTA in relation to earlier this year.