Last Week's Key Updates from the Specialty Chemicals Sector

1 2 3 4 5 6
Part 2
Last Week's Key Updates from the Specialty Chemicals Sector PART 2 OF 6

Axalta Plans to Increase Prices in China

Axalta to increase prices

On March 14, 2017, Axalta (AXTA) announced that it would increase prices of certain refinish and industrial coatings products in Greater China. The price increase was primarily due to the increase in the costs of raw materials. The price increase will affect certain refinish and industrial coatings customers, select light and commercial vehicle OEMs, and sub-suppliers to these end markets.

Axalta Plans to Increase Prices in China

Interested in AXTA? Don't miss the next report.

Receive e-mail alerts for new research on AXTA

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Steven Markevich, Axalta’s executive vice president and president of transportation coatings and Greater China, said, “The upward pricing pressure on the cost of our raw materials reflects multiple factors beyond our control including the availability of feedstocks, increased regulatory requirements, and a limited number of suppliers that meet our rigorous quality standards.”

Axalta’s stock performance for the week

On March 17, 2017, Axalta closed at $32.61 and rose 4.5% for the week. The iShares U.S. Basic Materials ETF (IYM), which holds 1.2% in AXTA as of March 17, underperformed AXTA with a return of 1.6% for the week and closed at $89.48. AXTA’s peers Sherwin-Williams (SHW), PPG Industries (PPG), and RPM International (RPM) rose 0.5%, 2.4%, and 4.6%, respectively. AXTA’s stock price traded 17.2% above the 100-day moving average price of $27.82, indicating an upward trend in the stock. Analysts expect AXTA’s 12-month target price to be at $32.82, implying a potential return of 0.6% over the closing price on March 17, 2017. Year-to-date, the stock has returned 19.9%. AXTA’s 52-week low is $24.27, and its 52-week high is $33.06.

The 14-day relative strength index (or RSI) of 76 indicates that the stock has moved into the overbought situation temporarily. An RSI of 70 and above indicates that the stock is overbought, while an RSI of 30 and below indicates that the stock is oversold.


Please select a profession that best describes you: