Axalta Coating downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo analyst Michael Sison last night downgraded Axalta Coating (AXTA) to Equal Weight from Overweight with a price target of $30, down from $39. The firm believes the company’s volume pressure will be more pronounced relative to RPM (RPM) and PPG Industries (PPG). The war in Iran has led to “broad-based” inflation across most commodity chains, flowing down to coatings raw materials, the analyst tells investors in a research note. Wells says that in addition to margin pressure from the higher costs, sales results for coatings names will be pressured by a tougher macro backdrop as affordability remains challenging. It believes Axalta’s margins will be pressured by rising raw material costs as the conflict in the Middle East persists.