Axalta’s new launches
On October 16, 2017, Axalta Coating Systems (AXTA) added Tufcote Hydro 2.1 HG and Tufcote Hydro LV HG waterborne acrylic products to expand its Tufcote portfolio. These products are designed for use on the surfaces of wood, plastic, and metal. The company caters these products to schools, hospitals, hotels, and other industries. According to Axalta, these products are cost-effective and approved by the USDA (U.S. Department of Agriculture).
Axalta also launched a new railcar coating that caters to the railcar and transportation industry. The new coating further enhances Axalta’s presence in the railcar segment.
Michael Heineman, Axalta’s vice president of Rail and High Performance Coatings, said, “Rail car and transportation maintenance structures are constructed to last and need a tough, durable finish to ensure their sturdy build stays intact. Our new Tufcote line’s formulations and field proven technologies yield lasting results, improving the durability, protection and aesthetics of these substrates over time.”
Axalta rose 3.7% and closed at $29.31 for the week ended October 20, 2017. It outperformed the iShares US Basic Materials (IYM), which rose 0.30%. AXTA’s peers RPM International (RPM), Sherwin-Williams (SHW), and PPG Industries (PPG) rose 0.80%, 1.0%, and 3.8%, respectively, for the same period. Despite strong gains, AXTA traded 4.3% below its 100-day moving average of $30.64, indicating a downward trend. On a year-to-date basis, the stock has risen 7.8%. However, analysts see a further upside for the stock and have recommended a target price of $31.71 over the next 12 months. That implies a return potential of 8.2% from its closing price on October 20, 2017. AXTA’s relative strength index level of 54 indicates that the stock is neither overbought nor oversold.