RBC Capital has revised its price target for Axalta Coating Systems (AXTA, Financial), reducing it to $41 from a previous $46. The firm maintains an Outperform rating on the stock, indicating confidence in its potential despite current market challenges.
This adjustment comes as part of an extensive evaluation of the coatings sector ahead of first-quarter results. RBC Capital is updating its financial models to account for volatile market conditions and the impact of tariffs. Axalta is experiencing difficulties due to reduced production in the automotive original equipment manufacturer (OEM) sector, increased insurance claims, a sluggish industrial segment, and a quiet do-it-yourself (DIY) market.
These factors are contributing to a more cautious outlook, prompting RBC Capital to adjust its expectations for Axalta's financial performance. However, the retained Outperform rating suggests an underlying belief in the company's long-term strategy and resilience in the face of these headwinds.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 20 analysts, the average target price for Axalta Coating Systems Ltd (AXTA, Financial) is $41.33 with a high estimate of $51.00 and a low estimate of $32.00. The average target implies an upside of 32.72% from the current price of $31.14. More detailed estimate data can be found on the Axalta Coating Systems Ltd (AXTA) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Axalta Coating Systems Ltd's (AXTA, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Axalta Coating Systems Ltd (AXTA, Financial) in one year is $34.04, suggesting a upside of 9.31% from the current price of $31.14. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Axalta Coating Systems Ltd (AXTA) Summary page.
