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Fly News Breaks for June 20, 2019
AXTA, AKZOY, SHW
Jun 20, 2019 | 07:47 EDT
Deutsche Bank analyst David Begleiter raised his price target for Axalta Coating Systems (AXTA) to $35 from $30 after the company announced that its board had initiated a review of strategic alternatives, including a potential sale. The analyst views the announcement as a "solid positive," though he notes that it is not new information as Axalta has "arguably" been for sale for the last two-plus years. Further, the timing is unusual as the three most likely bidders for Axalta are somewhat constrained in the near-term as Nippon Paint is buying Dulux, AkzoNobel (AKZOY) is focused on delivering "aggressive" 2020 margin targets, and Sherwin-Williams (SHW) is still a bit levered post Valspar, Begleiter tells investors in a research note. Still, the analyst believes the most likely outcome of Axalta's process is a sale of the company in the mid-$30s per share. And without a sale, Begleiter believes downside in the stock is limited, creating an attractive risk/reward setup. He reiterates a Buy rating on Axalta Coating.
News For AXTA;AKZOY;SHW From the Last 2 Days
SHW
Nov 18, 2019 | 10:14 EST
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Progressive (PGR) downgraded to Neutral from Conviction Buy at Goldman Sachs with analyst Yaron Kinar saying shares remain undervalued, but 2020 and 2021 consensus estimates will come down as Progressive decides to prioritize sales growth over sustaining core underwriting margins that are consistent with 2019. 2. Sherwin-Williams (SHW) downgraded to Neutral from Conviction Buy at Goldman Sachs with analyst Robert Koort citing valuation. 3. Anchiano Therapeutics (ANCN) was downgraded to Neutral from Outperform at Baird and Oppenheimer and to Neutral from Buy at Ladenburg. 4. Workday (WDAY) downgraded to Equal Weight from Overweight at Morgan Stanley with analyst Keith Weiss saying while the company said its pipeline into FY21 remains strong, CEO Aneel Bhusri noted they have "definitely" seen some deals get pushed out and deferred. 5. Amarin (AMRN) downgraded to Neutral from Buy at Citi with analyst Joel Beatty saying his new price target reflects a valuation of $11.2B when assuming a diluted share count of 413M. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.