Axalta Coating Systems (NYSE:AXTA) Cut to "Equal Weight" at Wells Fargo & Company

Key Points

• Wells Fargo downgrade: The firm cut Axalta Coating Systems (NYSE:AXTA) from "overweight" to "equal weight" and lowered its target from $39 to $30, implying only about a 4.4% upside from the current share price.
• Analyst consensus is cautious: Thirteen analysts rate the stock a Hold versus five Buys, giving a MarketBeat consensus rating of "Hold" and a consensus price target of $35.40.
• Recent results and guidance beat down slightly: Axalta posted $0.59 EPS for the quarter (missing by $0.01) with revenue just below estimates, set Q1 guidance around $0.50 EPS, and sell-side analysts expect roughly $2.55 EPS for the year.

Axalta Coating Systems (NYSE:AXTA - Get Free Report) was downgraded by analysts at Wells Fargo & Company from an "overweight" rating to an "equal weight" rating in a research note issued on Friday, MarketBeat Ratings reports. They presently have a $30.00 target price on the specialty chemicals company's stock, down from their prior target price of $39.00. Wells Fargo & Company's target price would suggest a potential upside of 4.38% from the stock's current price.

A number of other equities research analysts have also weighed in on the company. KeyCorp reiterated a "sector weight" rating on shares of Axalta Coating Systems in a research note on Wednesday, February 11th. Royal Bank Of Canada upped their target price on shares of Axalta Coating Systems from $33.00 to $35.00 and gave the company a "sector perform" rating in a research note on Thursday, February 12th. BMO Capital Markets reaffirmed a "market perform" rating and set a $35.00 price target on shares of Axalta Coating Systems in a research report on Wednesday, February 11th. UBS Group decreased their price target on Axalta Coating Systems from $36.00 to $31.00 and set a "neutral" rating for the company in a research note on Thursday, April 2nd. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Axalta Coating Systems in a report on Wednesday, January 21st. Five investment analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $35.40.

Axalta Coating Systems Stock Performance

NYSE:AXTA opened at $28.74 on Friday. The firm has a market cap of $6.13 billion, a price-to-earnings ratio of 16.52, a price-to-earnings-growth ratio of 1.26 and a beta of 1.33. Axalta Coating Systems has a 1-year low of $24.94 and a 1-year high of $35.72. The firm's fifty day moving average price is $30.54 and its 200 day moving average price is $30.31. The company has a debt-to-equity ratio of 1.33, a current ratio of 2.06 and a quick ratio of 1.50.

Axalta Coating Systems (NYSE:AXTA - Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The specialty chemicals company reported $0.59 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.60 by ($0.01). The firm had revenue of $1.26 billion for the quarter, compared to analysts' expectations of $1.27 billion. Axalta Coating Systems had a net margin of 7.39% and a return on equity of 23.60%. The company's revenue for the quarter was down 3.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.60 EPS. Axalta Coating Systems has set its Q1 2026 guidance at 0.500-0.50 EPS. On average, sell-side analysts expect that Axalta Coating Systems will post 2.55 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Intech Investment Management LLC raised its holdings in Axalta Coating Systems by 277.3% during the third quarter. Intech Investment Management LLC now owns 103,292 shares of the specialty chemicals company's stock worth $2,956,000 after purchasing an additional 75,915 shares in the last quarter. Lakewood Capital Management LP boosted its stake in Axalta Coating Systems by 34.2% during the 3rd quarter. Lakewood Capital Management LP now owns 1,187,648 shares of the specialty chemicals company's stock valued at $33,990,000 after purchasing an additional 302,751 shares in the last quarter. Artisan Partners Limited Partnership boosted its stake in Axalta Coating Systems by 189.9% during the 3rd quarter. Artisan Partners Limited Partnership now owns 1,273,955 shares of the specialty chemicals company's stock valued at $36,461,000 after purchasing an additional 834,481 shares in the last quarter. Millennium Management LLC raised its stake in shares of Axalta Coating Systems by 475.3% in the 3rd quarter. Millennium Management LLC now owns 7,838,111 shares of the specialty chemicals company's stock worth $224,327,000 after buying an additional 6,475,786 shares in the last quarter. Finally, CWM LLC lifted its holdings in shares of Axalta Coating Systems by 211.8% in the third quarter. CWM LLC now owns 141,253 shares of the specialty chemicals company's stock valued at $4,043,000 after buying an additional 95,950 shares during the period. Institutional investors own 98.28% of the company's stock.

Axalta Coating Systems Company Profile

Axalta Coating Systems is a global leader in the development, manufacture and sale of liquid and powder coatings. The company's product portfolio spans refinish coatings for the automotive collision repair market, original equipment manufacturer (OEM) coatings for new vehicle production, and industrial coatings including electrodeposition (E-coat) and powder coatings for a variety of sectors such as architecture, heavy equipment and general industrial applications.

Tracing its roots to the 19th century and rebranded as Axalta following its separation from DuPont Performance Coatings in 2013, the company has built a presence in more than 100 countries.

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