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Axalta Signs a Three-Year Global Alliance with Plenham

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Axalta in a global alliance

On January 4, Axalta (AXTA) announced a three-year global alliance with Plenham—the parent company of Bodyshop and IBIS Worldwide. The alliance aims to share business improvement ideas, innovation, best practices, new process establishment, and knowledge through media and social interactions.

The alliance is expected to help Axalta leverage its global refinish expertise to enhance Plenham’s worldwide media platforms and networks. The partnership will likely start with the IBIS USA 2019 symposium in San Diego on February 13–15.

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Jim Muse, Axalta’s Vice President of Global Refinish sales, said, “I am confident that this new alliance between Plenham and Axalta will significantly benefit our customers and the overall global collision repair industry. Axalta’s long and successful track record in helping our customers enhance efficiency by using new products and technologies combined with Plenham’s extensive network of body shops around the world make this a powerful combination. Together, we can advance new thinking and technologies quicker and get faster feedback on ideas that will make our industry better and more cost-effective than ever before. This is truly a win-win for our two companies and, as importantly, for the entire industry. We are excited to get started in 2019.”

Axalta’s stock performance

Axalta started 2019 on a positive note and rose 4.1% in the first week of 2019. In 2018, Axalta fell 27.6%. Axalta is trading 10.2% below the 100-day moving average price of $26.50, which indicates that the stock is on a downward trend. Analysts are positive about Axalta. Analysts recommended a target price of $29.40, which implies a potential return of ~23.5% over the closing price as of January 4. The company’s 14-day relative strength index indicates that the stock isn’t overbought or oversold.

Investors could hold Axalta indirectly by investing in the iShares U.S. Basic Materials ETF (IYM), which has invested 0.9% of its portfolio in Axalta. The fund also provides exposure to DowDuPont (DWDP), Linde (LIN), and Air Products and Chemicals (APD) with weights of 22.4%, 15.4%, and 6.3%, respectively, as of January 4.

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