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Analyst Recommendations for Axalta ahead of 4Q16 Earnings

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Axalta set to announce 4Q16 earnings

Axalta Coating Systems (AXTA) is set to announce its 4Q16 earnings on February 8, 2017. In this series, we’ll look at analysts’ revenue forecasts, EPS (earnings per share) estimates, and analysts’ recommendations so you can make informed decisions.

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Analyst recommendations

As of February 3, 2017, 17 brokerage firms are actively tracking Axalta stock. About 65.0% of them have recommended a “buy” for the stock, and 35.0% have recommended a “hold.” None of them have recommended a “sell.”

The analyst consensus indicates a 12-month target price of $31.20, implying a return potential of 5.7% based on AXTA’s closing price of $29.51 on February 2, 2017.

Why most analysts recommend a ‘buy’

Below are a few factors that may have influenced the majority of brokers to recommend a “buy” for Axalta (AXTA) stock:

  • focus on reducing interest expense
  • aggressive acquisition strategy for future growth
  • cost-saving initiatives

Recommendations and targets

Below are recommended target prices for Axalta from some well known brokerage firms:

  • On January 17, 2017, Jefferies rated AXTA a “buy” with a target price of $33, which implies a 12-month return of 11.8% based on the closing price of $29.51 on February 2, 2017.
  • On December 28, 2016, Barclays (BCS) rated AXTA “equal weight” with a target price of $31, which implies a 12-month return of 5.0% based on the closing price of $29.51 on February 2, 2017.
  • On December 5, 2016, Bank of America (BAC) rated AXTA a “buy” with a target price of $32, which implies a 12-month return of 8.4% based on the closing price of $29.51 on February 2, 2017.
  • On December 21, 2016, RBC Capital Markets raised AXTA’s target price to $31, which implies a 12-month potential return of 5.0% based on the closing price of $29.51 on February 2, 2017.

Investors can indirectly hold Axalta by investing in the iShares US Basic Materials (IYM), which has invested 1.1% of its holdings in Axalta as of February 2, 2017.

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