ION expands ETF trading capabilities with Tradeweb integration
Investing.com - Axalta Coating Systems (NYSE:AXTA) stock rose after UBS reiterated its Buy rating and $39.00 price target following the company’s merger agreement with Akzo Nobel (AKZA). Currently trading at $28.60, Axalta appears undervalued according to InvestingPro analysis, with a P/E ratio of 13.55 and a notably low PEG ratio of 0.33.
The all-stock merger of equals will create a combined company with approximately $17 billion in pro-forma sales, $3.3 billion in adjusted EBITDA including synergies, and $1.5 billion in pro-forma free cash flow.
The companies are targeting synergies of approximately $600 million, to be delivered within three years of closing, representing about 3.5% of combined sales.
UBS estimates the deal implies a roughly $30 per share value for Axalta today, a 6-8% premium, with potential value of $45-$47 per share including synergies at a 9x multiple, representing over 60% upside.
The combined entity will feature leading positions across powder coatings, aerospace, refinish, mobility, marine & protective, industrial, and decorative segments, with more than 100 established brands in its portfolio.
In other recent news, Axalta Coating Systems reported its third-quarter 2025 earnings, exceeding analysts’ expectations with an adjusted earnings per share (EPS) of $0.67, compared to the forecasted $0.64. Revenue for the quarter aligned with projections at $1.3 billion. These results came amidst the announcement of a significant $25 billion merger with AKZO, described as a merger of equals. Following this merger news, RBC Capital downgraded Axalta’s stock from Outperform to Sector Perform and adjusted the price target from $35.00 to $30.00. Meanwhile, KeyBanc maintained a Sector Weight rating on Axalta, acknowledging the company’s steady performance despite challenging demand conditions. KeyBanc highlighted that Axalta achieved a 2% EBITDA growth in 2025, navigating a tough market environment. These developments reflect ongoing strategic and operational adjustments within Axalta Coating Systems.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.