Axalta’s Managment Changes in Global Refinishing



Axalta’s management change

On August 25, 2017, Axalta Coating Systems (AXTA) announced that it is appointing Joseph F. McDougall as senior vice president and president of its Global Refinish division, which has a presence in more than 130 countries and provides coating and application technologies. It also provides service and support resources in collision repair.

The Global Refinish division contributes 63.5% of the Performance Coatings segment’s revenues. For 2Q17, the business reported revenues of $421 million, compared with $447 million in 2Q16.

Axalta Chairman and CEO (chief executive officer) Charlie Shaver believes that McDougall will be crucial in the creation of growth opportunities for the company as it aims to boost productivity.

Article continues below advertisement

Axalta’s stock performance

Axalta stock fell 0.4% and closed at $28.92 for the week ended September 29, 2017. AXTA stock was trading 6.6% below its 100-day moving average price of $30.98, indicating a prevailing weakness in the stock. However, analysts expect a target price of $32.53, implying a return potential of 12.5% in the next year over its closing price as of September 29. AXTA’s 14-day RSI (relative strength index) level of 43 indicates that the stock is neither overbought nor oversold.

Notably, investors can indirectly hold Axalta by investing in the iShares US Basic Materials ETF (IYM), which has invested 1.0% of its portfolio in Axalta. IYM’s other holdings include DowDuPont (DD), Praxair (PX), and Monsanto (MON), which had weights of 24.8%, 6.2%, and 8.1%, respectively, on September 29.


More From Market Realist