Mizuho Securities analyst John Roberts CFA has maintained their bullish stance on AXTA stock, giving a Buy rating yesterday.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
John Roberts CFA has given his Buy rating due to a combination of factors including Axalta Coating Systems’ strong fiscal performance and optimistic future guidance. The company reported a 10% year-over-year increase in adjusted EBITDA for the fourth quarter of 2024, despite a slight decrease in volume, which surpassed market expectations. The guidance for 2025 shows a midpoint adjusted EBITDA of $1.16 billion, aligning well with analyst estimates, and an updated adjusted EPS midpoint of $2.55, which is an improvement from previous forecasts.
Additionally, Axalta’s performance in its Mobility segment was particularly robust, with a 29% increase in adjusted EBITDA driven by higher volumes and favorable pricing conditions. This positive outlook is reinforced by adjustments in their earnings per share estimates for 2025 and 2026, leading to an increased price target of $44. The anticipated strength in the Chinese and Latin American markets, along with strategic moves such as the acquisition of CoverFlexx, also contribute to the Buy rating, emphasizing growth potential in key areas.
Roberts CFA covers the Basic Materials sector, focusing on stocks such as Albemarle, Ashland, and Cabot. According to TipRanks, Roberts CFA has an average return of 4.8% and a 58.38% success rate on recommended stocks.
In another report released yesterday, BMO Capital also reiterated a Buy rating on the stock with a $51.00 price target.