Mizuho's analyst John Roberts has revised the price target for Axalta Coating Systems (AXTA, Financial), lowering it from $40 to $37. Despite this adjustment, the firm maintains its Outperform rating for the stock.
This change reflects a broader update across the chemicals, agriculture, and packaging sectors, influenced by recent reductions in market multiples. However, Mizuho has only slightly reduced its forward estimates due to the absence of any recession forecasts.
The firm notes that declining oil prices could diminish the gas-linked cost advantage for many basic chemical stocks. Additionally, there is potential short-term risk due to pre-buying activities in the auto and electronics sectors during the March quarter.
