Axalta’s new product
On September 11, 2017, Axalta (AXTA) announced that it’s introducing NAP-Gard 7-0015 Tan Internal FBE to its corrosion resistant internal pipe coatings line. NAP-Gard coatings are used in oil, gas, and water pipelines. The coatings keep valves and fittings from corroding. The product meets the Saudi Aramco 09-SAMSS-091 (2011) specification. Axalta’s pipe coatings provide cost-effective protection for pipes’ internal diameter.
Meghan Hodge, Axalta’s Global Product Marketing Manager, Functional Coatings, said, “Axalta is excited to bring an additional product to its internal pipe coatings line.Nap-Gard 7-0015 will be a good option for customers who need a flexible coating that provides corrosion protection in severe downhole environments up to 105°C (221°F).”
Axalta rose significantly as the market remained strong. Axalta closed at $29.25 and rose 2.80% for the week. Although Axalta made good gains, the stock still traded 6.30% below its 100-day moving average price of $31.21, which indicates prevailing weakness in the stock. On a year-to-date basis, the stock has returned 7.50%. Axalta’s peers Sherwin-Williams (SHW), PPG Industries (PPG), and RPM International have returned 26.90%, 12.20%, and -6.20%, respectively. Analysts forecast Axalta’s stock price to be at $32.60 in the next 12 months, which implies a return potential of 11.40% from the closing price on September 15, 2017. Axalta’s 14-day relative strength index of 48 indicates that the stock isn’t overbought or oversold.
Axalta underperformed the iShares U.S. Basic Materials ETF (IYM), which returned 3.0% during the same period. IYM has invested 1.0% of its portfolio in Axalta as of September 15, 2017.