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On Wednesday, Mizuho (NYSE:MFG) Securities adjusted its outlook on Axalta Coating Systems (NYSE:AXTA), increasing the price target to $44 from the previous $41, while keeping an Outperform rating on the shares. Currently trading at $38.01, the stock has shown strong momentum with an 18.3% return over the past year. According to InvestingPro analysis, Axalta boasts a perfect Piotroski Score of 9, indicating excellent financial strength. The adjustment follows Axalta’s updated financial guidance and recent performance metrics.
Axalta has provided its adjusted EBITDA midpoint guidance for 2025 at $1.16 billion, which aligns closely with the Morgan Stanley (NYSE:MS) USA estimate and Bloomberg consensus of $1.15 billion and $1.16 billion, respectively. The company’s current EBITDA stands at $986 million, with a healthy gross profit margin of 34.1%. For the first quarter of 2025, the company anticipates adjusted EBITDA to be around $265 million, compared to the Morgan Stanley USA estimate and consensus of $269 million and $266 million.
The company has also updated its adjusted earnings per share (EPS) guidance for 2025 to a midpoint of $2.55, revised from the initial range of $2.30 to $2.35, following changes made on January 21 to align its adjusted EBIT, net income, and EPS reporting more closely with industry peers. Axalta’s "2026 A Plan" now targets an EPS of approximately $2.70, slightly above the high end of the 2025 guidance.
Axalta’s performance in the fourth quarter of 2024 showcased a 10% year-over-year increase in adjusted EBITDA to $275 million, despite a modest 1% decline in volume. This result was in line with industry trends observed in the industrial coatings segments of other companies such as Sherwin-Williams (NYSE:SHW), PPG (WA:IBSP), and RPM.
In response to Axalta’s updated financial targets and recent earnings, Mizuho Securities revised its 2025 and 2026 EPS estimates for the company to $2.55 and $2.75, up from the former estimates of $2.30 and $2.65. The firm reiterated its positive stance on Axalta with the elevated price target and Outperform rating. InvestingPro data reveals that 5 analysts have recently revised their earnings upward, with analyst targets ranging from $34.61 to $51. For deeper insights into Axalta’s valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, check out the full Pro Research Report available on InvestingPro.
In other recent news, Axalta Coating Systems has been the focus of several analysts’ reports. BMO Capital Markets maintained an Outperform rating on Axalta’s stock, setting a price target of $51. The firm highlighted Axalta’s potential for nearly 40% upside, praising the company’s strategic pricing, cost efficiency measures, and substantial market share gains. They also projected Axalta to deliver high single-digit to low double-digit EPS growth, supported by strong free cash flow and an enhanced balance sheet.
Concurrently, Citi raised its price target for Axalta to $42, maintaining a Neutral rating. The adjustment followed Axalta’s recent earnings call, where the company’s successful expansion in the Light Vehicle segment in China and robust performance in the Refinish segment were highlighted. Axalta’s future plans include continued focus on productivity programs and pursuing accretive mergers and acquisitions opportunities.
In other company developments, Axalta reported fourth-quarter earnings that surpassed analyst expectations with adjusted earnings per share of $0.60 and revenue of $1.31 billion. The company’s net sales increased 1% year-over-year to $1.3 billion, and net income rose 85% to $137 million. Axalta’s management expects full-year 2025 net sales of $5.35 billion to $5.4 billion and Adjusted EBITDA of $1.15 billion to $1.175 billion.
Meanwhile, Pulse Biosciences (NASDAQ:PLSE) announced the appointment of Jon Skinner as its new Chief Financial Officer. Skinner, who previously held leadership roles at Teleflex (NYSE:TFX) and Axalta Coating Systems, is expected to support the scaling of Pulse Biosciences’ commercialization and operational activities.
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