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Axalta Coating upgraded to Buy from Neutral at Citi

Axalta Coating upgraded to Buy from Neutral at Citi

Citi analyst P.J. Juvekar upgraded Axalta Coating Systems (AXTA) to Buy from Neutral with a price target of $35.19, up from $30.29. The analyst sees further share upside following the "solid" Q4 report. Axalta has "under-executed" other coatings companies as margins in its Mobility coatings are near breakeven, while competitor PPG (PPG) is at 13%, Citi tells investors in a research note. The firm thinks Axalta has many underperforming legacy contracts and that new CEO Chris Villavarayan has been hired to fix the company. While it is early, Villavarayan seems rightly focused on getting pricing, while lowering the cost structure, contends the analyst.

Published first on TheFly

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