uploads///Part  Axalta

Axalta’s Bright Red Paint for China’s New Bullet Train

Peter Neil - Author

Jul. 10 2017, Published 11:35 a.m. ET

Axalta’s bright red Imron

Axalta Coating Systems (AXTA) has added one more feather to its cap. Its bright red Imron paint now graces China’s new high-speed train. The train is called “Fuxing,” which translates to “rejuvenation.” It is said to travel at 400 kilometers per hour and is expected to have a lifespan of 30 years. AXTA’s coating is expected to last for 1,500 hours of resistance to aging on the trains.

Willie Wu, vice president of Axalta and president of its Greater China operations, said, “Congratulations to China’s new generation bullet train—Fuxing—rolling out successfully! Axalta feels great honor to join in the design and construction work with CRRC Qingdao Sifang Co., Ltd and make it all happen.”

Article continues below advertisement

The effect on Axalta stock

In a short week due to the July Fourth holiday, Axalta had a strong performance and rose 1.6% for the week ended July 7, 2017, and closed at $32.56. It outperformed the iShares US Basic Materials (IYM), which rose 0.60% for the same period. On a year-to-date basis, AXTA has risen 19.7%. Analysts expect a further upside for the stock with a target price of $33.88. That implies a potential return of 4.0% over the closing price as of July 7, 2017.

The stock is trading 3.4% above its 100-day moving average of $31.50, indicating an upward trend. AXTA’s 52-week low is $24.27, while its 52-week high is $34.10. At the end of the week, AXTA had an RSI of 53, indicating that the stock is neither overbought nor oversold.

You can indirectly hold AXTA by investing in IYM, which has invested 1.1% of its holdings in Axalta. The top holdings of the fund include Dow Chemical (DOW), DuPont (DD), and Monsanto (MON) with weights of 11.1%, 11.0%, and 8.0%, respectively, as of July 7, 2017.


Latest Monsanto Co News and Updates

    © Copyright 2022 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.