Evercore ISI Downgrades Axalta Coating Systems (AXTA) to In Line

Evercore ISI analyst Eric Boyes downgraded Axalta Coating Systems (NYSE: AXTA) from Outperform to In Line with a price target of $32.00 (from $47.00).

The analyst comments "Refinish trough extends + industrial soft. FY25 guidance at risk, with FY26 outlook a challenge. Cheap without near-term catalyst. Downgrading to In Line as persistent destocking in refinish and weakness in industrial leave AXTA at risk of cutting FY25 sales & EBITDA guidance. Moreover it appears increasingly likely destocking cascades into 1H26, and analysis within suggests a rebound in collision claims remains 2-3+ quarters out. While auto builds have emerged as a positive offset, the set up for the '26 guide risks underwhelming (EVR -7% below street on '26 Performance EBITDA, +2% above in Mobility). AXTA’s valuation multiple has de-rated substantially as a head-ofplan margin expansion and deleveraging has proven insufficient to overcome skepticism over secular deterioration in refinish. We revise our 12-month PT to $32/shr which represents 8.5-9.0x '26 EBITDA (vs 1yr avg 8.7x, 3yr avg 9.5x), though shares likely remain range-bound at 7.5-8.5x '25 ($25-30/shr) into year-end. Not pronounced downside, but with both 4Q and 2026 incrementally worse the stock is likely lower, and with claims recovery still several quarters out and limited near-term catalysts we believe a move to the sidelines is prudent."

For an analyst ratings summary and ratings history on Axalta Coating Systems click here. For more ratings news on Axalta Coating Systems click here.

Shares of Axalta Coating Systems closed at $28.08 yesterday.

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