Axalta Coating Systems (AXTA) PT Raised to $33 at RBC Capital

RBC Capital analyst Arun Viswanathan raised the price target on Axalta Coating Systems (NYSE: AXTA) to $33.00 (from $30.00) while maintaining a Sector Perform rating.

The analyst commented: "For AXTA, we expect an inline Q4 and maintain our Q4/FY25/FY26 EBITDA of $284M/$1.14B/ $1.18B, but raise our PT to $33 from $30 on 9x (from 8.5x) FY26 EBITDA. Auto seems to be slightly recovering, as S&P recently raised its 2025/2026 global auto production to 92.4M/91.9M (+3.2%/-0.5% y/y). We hosted a webinar in Dec on the $25B AXTA/AKZO merger (Link) and highlight: 1) We think growth remains challenged across most Coatings verticals except Resi Repaint, Aerospace, P&M, and Packaging, 2) We think Coatings multiples have compressed ~1-4x turns since 2022 on lower growth expectations and investor capital flowing out of Materials/Industrials, and 3) We think slighty disappointing deal structure, unusually long 18-month to close, and lack of premium has spurred investor interest, but potential interlopers appear limited, in our view."

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