Axalta Coating Systems (AXTA) PT Raised to $32 and Added to Conviction Buy List at Goldman Sachs

October 14, 2020 6:34 AM EDT
Get Alerts AXTA Hot Sheet
Price: $29.80 +1.29%

Rating Summary:
    15 Buy, 9 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 17 | Down: 5 | New: 36
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Goldman Sachs analyst Robert Koort raised the price target on Axalta Coating Systems (NYSE: AXTA) to $32.00 (from $26.00) while adding the company to Goldman's Conviction Buy List. AXTA is more leveraged to auto OEM and auto refinish end markets and the auto outlook has improved meaningfully in the last few months. Auto production is expected to bounce back from the deep 2Q20 decline of 50% to a 2H20 GS projected decline of just 4%. Additionally, miles driven (which suggests the potential for auto accidents) has also rebounded substantially. National traffic is now down 6% versus ~30-40% in 2Q20, suggesting improving momentum for AXTA’s refinish paint business.

The analyst maintained a Buy rating stating "Both PPG (10/8/20) and SHW (9/29/20) have issued positive pre-announcements for 3Q20 results and consequently saw 2020 Bloomberg consensus EBITDA estimates increase 12% and 10%, respectively in the past 3 months. Conversely, AXTA has not issued any updated earnings commentary and its 2020 consensus EBITDA has remained relatively static".

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