|Over a week ago|
Axalta Coating price target raised to $26 from $21 at Deutsche Bank » 07:5306/1706/17/20
Deutsche Bank analyst…
Deutsche Bank analyst David Begleiter raised the firm's price target on Axalta Coating to $26 from $21 and keeps a Buy rating on the shares after the company provided an update on business conditions and sales trends. Overall, Q2 sales are tracking in line with expectations provided during the Q1 earnings conference call, Begleiter tells investors in a research note.
Axalta Coating price target raised to $26 from $21 at RBC Capital » 06:5506/1706/17/20
RBC Capital analyst Arun…
RBC Capital analyst Arun Viswanathan raised the firm's price target on Axalta Coating to $26 from $21 and keeps an Outperform rating on the shares. The worst is now behind for the stock and gradual improvement in Performance Coatings can be expected, the analyst tells investors in a research note. Beyond 2020, Viswanathan is also positive on Axalta's go-forward opportunities given its leverage to economies reopening, liquidity of $1.5B, price to cost tailwinds, and peer group multiple expansion.
Axalta Coating reports April and May total net sales down 48% vs. last year » 07:0506/1606/16/20
Axalta Coating Systems…
Axalta Coating Systems announced an update on Q2 trends through May 2020. Axalta had withdrawn its guidance for the FY20 in March due to the uncertainty in the outlook for customer demand as a result of the COVID-19 pandemic and committed to offering an intra-quarter update in June. For April and May, total net sales declined in the aggregate by 48% excluding foreign exchange and divestiture impacts versus the same months in the prior year. The decline versus the prior year in May was slightly less than April, with May sales increasing approximately 15% in total compared to April on a sequential basis, given a notable pickup in net sales partly from the restart of automotive OEM production in mid-May. Performance Coatings segment net sales declined during April and May by 37% excluding foreign exchange and divestiture impacts compared to the same months in the prior year. Underlying traffic data supporting the Refinish business continued to show improvement into June, with overall U.S. traffic recovering to 75% of pre-COVID-19 seasonally adjusted levels as of early June.
|Over a month ago|
Axalta Coating price target raised to $27 from $22 at JPMorgan » 09:1305/2905/29/20
AXTA, PPG, SHW, RPM
JPMorgan analyst Jeffrey…
JPMorgan analyst Jeffrey Zekauskas raised the firm's price target on Axalta Coating Systems (AXTA) to $27 from $22 and keeps an Overweight rating on the shares. The cyclicality of the industrial economy in an environment of slowing growth and now contraction has worked against the earnings and the valuations of Axalta and PPG Industries (PPG), Zekauskas tells investors in a research note. However, the tables are now turning, as the recovery in the housing market may be delayed or come in "fits and starts" because of domestic recessionary conditions, and the auto market is poised for a "more durable and predictable" multi-year recovery, says the analyst. Zekauskas keeps Overweight ratings on Axalta and PPG and Neutral ratings on Sherwin-Williams (SHW) and RPM (RPM).
Jana takes new stakes in Hillenbrand, New Relic during first quarter » 08:5405/1505/15/20
HI, NEWR, ZBH, WMGI, AXTA, JACK, BLMN, CAG, ELY, SPY, HDS
Barry Rosenstein's Jana Partners disclosed in a regulatory filing its holdings as of March 31, 2020. Jana made two new buys during the first quarter: it bought 3.66M shares of Hillenbrand (HI) and 846,872 shares of New Relic (NEWR). The fund exited two positions in the quarter, selling 350,000 shares of Zimmer Biomet (ZBH) and 648,445 shares of Wright Medical Group (WMGI). Jana increased its stake in three positions, buying more of Axalta Coating (AXTA), Jack in the Box (JACK) and Bloomin' Brands (BLMN). The fund reduced its stake in four holdings: Conagra Brands (CAG), Callaway Golf (ELY), SPDR S&P 500 ETF Trust (SPY) and HD Supply Holdings (HDS). Jana's top holdings as of March 31, in order of size, were Conagra Brands, Hillenbrand, Callaway Golf, SPDR S&P 500 ETF Trust and Axalta.
Goldman Sachs to hold a virtual conference » 08:1505/1405/14/20
DD, MMM, GFL, DOW, SHW, IP, HUN, SEE, LMT, ODFL, IR, WM, SON, SWK, AXTA, CE, KTOS, ITT, PPG
Industrials & Materials Virtual Conference will be held on May 13-15 with webcasted company presentations to begin on May 14 at 8 am. Webcast Link
Axalta Coating upgraded to Buy from Neutral at Goldman Sachs » 04:5905/1205/12/20
Goldman Sachs analyst…
Goldman Sachs analyst Robert Koort upgraded Axalta Coating Systems to Buy from Neutral with a price target of $25, up from $19. With stay at home orders being lifted in various geographies around the world, vehicles miles traveled improving, and global auto manufacturers preparing to resume production, Axalta's headwinds are turning to tailwinds, Koort tells investors in a research note. Further, the analyst believes the automotive refinish market in particular could be among the first industrially-oriented end markets to show meaningful signs of improvement. In all, the analyst believes trends for Axalta Coating are bottoming.
Notable companies reporting before tomorrow's open » 20:2505/0505/05/20
CVS, SHOP, ZTS, GPN, WM, AEP, GM, ALXN, KKR, GPC, DISCA, BWA, AXTA, WEN, WING, SPR, WYND, SBH
Notable companies reporting before tomorrow's open, with earnings consensus, include CVS Health (CVS), consensus $1.63... Shopify (SHOP), consensus (18c)... Zoetis (ZTS), consensus 86c... Global Payments (GPN), consensus $1.53... Waste Management (WM), consensus 90c... American Electric Power (AEP), consensus $1.11... General Motors (GM), consensus 33c... Alexion Pharmaceuticals (ALXN), consensus $2.71... KKR (KKR), consensus 42c... Genuine Parts (GPC), consensus $1.15... Discovery (DISCA), consensus 84c... BorgWarner (BWA), consensus 50c... Axalta Coating (AXTA), consensus 29c... Wendy's (WEN), consensus 10c... Wingstop (WING), consensus 24c... Spirit AeroSystems (SPR), consensus ($1.22)... Wyndham Destinations (WYND), consensus 59c... Sally Beauty (SBH), consensus 22c.
Axalta Coating sees April and May net sales down by approximately 50% » 17:0405/0505/05/20
Given limited current…
Given limited current forecast visibility, we are not offering full year 2020 guidance, other than those discrete elements below: Net sales: April and May expected to be down by ~50% compared to the same prior year two-month period; Sees diluted shares: ~237 million; Sees Capex: ~$80 million (50% lower than January guidance) ;Sees Interest expense: ~$140 million.
Axalta Coating reports Q1 EPS 31c, consensus 29c » 17:0205/0505/05/20
Reports Q revenue…
Reports Q revenue $983.5M, consensus $1.01B. Robert W. Bryant, Axalta's President and CEO, commented, "Our hearts go out to all those affected by the coronavirus globally and specifically in the local communities where our employees and customers live, work, and raise their families. We continue to focus first of protecting their health, safety and well-being. In support of designated essential customer activities, our manufacturing sites continue to meet customer demand with operating procedures implemented to maintain social distancing and increased sanitizing procedures. Our supply chain remains stable, and we are mitigating potential risks in close coordination with our suppliers. Nonetheless, there have been notable demand impacts in countries impacted by COVID-19, with the majority of our customers experiencing demand declines, with the possibility of a phased recovery beginning gradually in coming weeks."