Axalta offers new global warranty on architectural powder coatings
On February 20, 2017, Axalta (AXTA) came up with a global warranty program for its premium line of Alesta architectural coatings. Alesta is well known for corrosion protection, excellent weatherability, elasticity, and abrasion resistance. Alesta meets architectural specifications set forth by the American Architectural Manufacturers Association (or AAMA), Qualicoat, and GSB standards.
The warranty for Alesta products varies from 15 years to 30 years for Axalta approved applicators. Michael Cash, Axalta’s senior vice president and president of industrial coatings, said, “This Global Warranty program supports Axalta’s commitment to supplying our customers across the globe with innovative, durable and high-quality products that they can depend on.”
Axalta’s stock price
On February 24, 2017, Axalta closed at $29.38, dropping 0.9% for the week. The iShares U.S. Basic Materials ETF (IYM), which holds 1.1% in AXTA as of February 24, outperformed AXTA, which remained flat for the week and closed at $88.71. AXTA’s peers Sherwin-Williams (SHW), Valspar (VAL), and RPM International (RPM) rose 0.4%, 0.4%, and 1.1%, respectively. AXTA’s stock price traded 7.7% above the 100-day moving average price of $27.28, indicating an upward trend in the stock. Analysts expect AXTA’s 12-month target price to be at $32.60, implying a potential return of 11% over the closing price on February 24, 2017. Year-to-date, the stock has returned 8%.
The 14-day relative strength index (or RSI) of 54 indicates that the stock is neither overbought nor oversold. 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.