Update shared on17 Oct 2025
Fair value Decreased 1.06%Axalta Coating Systems' analyst price target has decreased modestly, dropping from approximately $36.56 to $36.17. Analysts cite persistent macroeconomic headwinds and uneven industrial demand as factors impacting near-term growth expectations.
Analyst Commentary
Analysts have delivered mixed perspectives on Axalta Coating Systems following recent adjustments to price targets and ratings. Their commentary highlights both areas of resilience and emerging challenges facing the company.
Bullish Takeaways
- Bullish analysts maintain a positive stance on Axalta's long-term growth prospects, as reflected in price targets that remain well above the current trading levels.
- Despite recent headwinds, certain business segments demonstrated strength at the end of the second quarter. This suggests underlying operational resilience.
- Strong company messaging and a disciplined approach to navigating macroeconomic uncertainties continue to support optimism around future execution.
Bearish Takeaways
- Bearish analysts highlight the increasingly negative macro outlook and emphasize that broader economic conditions remain a persistent challenge for near-term growth.
- The company’s industrial end markets are notably inconsistent, with recovery lagging behind other sectors and undermining overall results.
- Recent declines in commodity-related businesses raise concerns about the company's ability to sustain momentum observed earlier in the year.
- Hopes for improved seasonality in the fourth quarter have diminished and this could weigh on valuation until more consistent demand returns.
What's in the News
- Axalta Coating Systems will unveil two new battery coatings, Alesta e-PRO FG Black and Alesta e-PRO Dielectric Gray, at The Battery Show North America. This move strengthens its focus on EV safety and energy storage innovation (Key Developments).
- The new coatings are engineered for extreme heat protection and electrical insulation in electric vehicle battery applications. They address safety concerns such as thermal runaway and fire propagation (Key Developments).
- Axalta provided updated earnings guidance for 2025, projecting annual net sales between $5.2 billion and $5.275 billion, with low single-digit percentage growth for the third quarter (Key Developments).
- Between April and June 2025, Axalta completed the repurchase of 4.8 million shares, equivalent to 2.19% of shares outstanding, under its previously announced buyback program (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased modestly from $36.56 to $36.17, reflecting slightly lower expectations for the company’s fair value.
- Discount Rate has risen slightly from 8.43% to 8.47%, indicating a minor increase in perceived risk or required return for the stock.
- Revenue Growth projections have declined marginally from 2.31% to 2.25%.
- Net Profit Margin estimate has eased from 10.85% to 10.80%, suggesting a small reduction in anticipated profitability.
- Future P/E Ratio forecast has moved down slightly from 16.36x to 16.31x, implying a modest adjustment in valuation multiples.
Disclaimer
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